OREANDA-NEWS. December 1, 2010. SB Bank bond placement, series 4, total nominal value RUR1,5 bn accomplished.

The issue attracted 43 investor bids generating an order book around RUR2 billion and showing an oversubscription by more than one third.

The first coupon rate proposed by the investors ranged from 9.25% to 10.5% p.a. The rate of the first, second and third coupon was determined at the auction at the level of 10% p.a. The terms of the bond issue provide for put option at a 100% of the nominal price in one and a half year.

"We are satisfied with the results of our bonds placement. The overwhelming demand has reaffirmed the investor interest and confidence in SB Bank securities. The coupon rate was determined, according to our expectations, in the mid of the said range which is in line with current market rate of return level", says Andrei Egorov, First Deputy Chairman of the Board at SB Bank.

ZENIT Bank (Open Joint Stock Company) and "Ursa Capital" (LTD) were joint lead-managers for the issue, while the co-lead-manager was Commercial Bank "Otkrytie". Commercial Bank "Aresbank", Investment Company "Region" were underwriters, while the co-underwriters were Joint Stock Commercial Bank "Investtorgbank", Close Joint Stock Commercial Bank "Rublev", Open Joint Stock Company "Omsk-Bank", Commercial Bank "OPM-BANK", Joint Stock Investment Commercial Bank "TATFONDBANK", Commercial Bank "Almaz-invest-bank", Commercial Bank "KEDR", Investment Company "Veles Capital", and Open Joint Stock Company "AF Bank".

The proceeds from the placement will be utilized for further development of lending programmes, mostly for SMEs.