OREANDA-NEWS. February 21, 2011. The order book was closed for TCS Bank (CJSC) commercial paper series BO-03 with nominal value of R1.5 bln and a put option 1.5 years from the date of sale commencement.

Over the course of book building, investors submitted bids with coupon rates ranging from 12.00% to 14.00% annually. Investor demand for the sale totaled R2.8 bln.

Following completion of book building, TCS Bank (CJSC) set the interest rate on the commercial paper at 14.00% annually. Given the market situation, cost of placement, coupon rates on the commercial paper and existing demand, TCS Bank (CJSC) decided to satisfy 55 investor bids.

Settlements under the deal will take place upon placement of the commercial paper on MICEX on February 22, 2011.

Organizer of the sale: Troika Dialog
Co-underwriter: Capital-Center

Commenting on the commercial paper placement, President of “Tinkoff Credit Systems” Bank Oliver Hughes said:
"We are pleased with how the market has received our commercial paper issues. This allows us to lower borrowing costs with each successive sale. The proceeds from the placement will be put toward growing the credit card portfolio."

"Tinkoff Credit Systems" Bank (closed joint-stock company) was founded in 1996 by Oleg Tinkoff to provide clients with remote services on the credit card market. In mid-2007 the Bank began issuing credit cards. In 2010 the number of issued cards reached 700 thousand.
In 2007, Goldman Sachs became one of the bank’s co-owners, followed in 2008 by Vostok Nafta Investment Limited. Oleg Tinkoff continues to control about 70% of the Bank.
"Tinkoff Credit Systems" Bank is a member of the Deposit Insurance System. Since October 2008 the system has guaranteed each depositor in banks included in the system the return of 700,000 rubles on deposits and current accounts, including accrued interest. The bank’s online-deposit program was successfully launched in March 2010. In May 2010, Bank "Tinkoff Credit Systems" was assigned credit ratings by Moody’s Investors Service and Fitch Ratings.