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CenterCredit bank placed a debut eurobond issue worth USD200 mln (details)

February 15, 2005 | Cbonds

CenterCredit bank (kazakhstan) placed a debut issue of 3-year eurobonds worth USD200 mln on international capital markets.

“This year CenterCredit (BZK) has made an early breakthrough with the assistance of Citigroup: the bank successfully placed USD200 mln worth of eurobonds on the markets of Europe, South-East Asia and the US. The deal provided the bank with an access to a new capital market and investors”, - said Vladislav Lee, the bank’s CEO, at a press-conference on Tuesday. He noted that Citigroup was mandated the deal lead-manager, with Alpha Bank, Zenit Bank, Moscow Narodny Bank Ltd. and Commerzbank Aktiengesellschaft as co-managers.

According to his information, the fixed coupon rate amounted to 8% p.a. Lee noted that the bank was “pleasantly surprised by a fairly large order book generated by the eurobonds”. The issue attracted demand from 59 investors in amount of USD300 mln.

Lee said Asian investors accounted for 44% of the issue, 22% - investors from Switzerland, 11% - UK, 7% - Greece, 5% - USA, and 12% - other European countries. The investor base was represented by private banks (50%), fund managers (24%) and investment banks and trust companies (26%).

Lee emphasized the eurobond issue complied with the bank’s intentions to diversify funding base and would be used for customer credit financing, as well as general corporate purposes, including the bank’s liquidity management.

As to the company’s plans of borrowing on international markets, Lee said CenterCredit intended to raise a syndicated loan from international investors in the second half of 2005.

He noted that the bank’s external obligations totaled around USD600 mln, inclusive of the placed eurobond issue.

The issue was assigned a Ba1 long-term rating by Fitch Ratings and B+ by Moody’s Investors Services, with positive outlook.

CenterCredit is one of five biggest banks in Kazakhstan with 19 branches around the republic. The bank has a Ba1 long-term foreign currency deposit rating from Moody’s Investors Service.

In 2004 the bank’s net revenue totaled 2.4 bln tenge (current rate 130.25/USD1), which is 1.9 times more than in 2003. Its assets last year grew by 80% to 148.5 bln tenge, and the loan portfolio increased by 77% to 94 bln tenge. The bank’s own capital grew by 64% in 2004 (17.6 bln tenge as of January 1, 2005).

Based on Interfax data


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