Published: July 9, 2009
The R3bn series 6 bond placement by the Russian bank Zenit took place on July 7 and was held at MICEX stock exchange in the form of open subscription at the auction on setting the first coupon rate.
32 investors' applications were filed for the total amount of R3.3bn (US$94mn). The range of the offered first coupon rates made from 14% tо 15.20% p.a. at the auction. The final first coupon rate was fixed at 15% p.a. The second coupon is equal to the first. The effective yield of the bonds to the one-year put option made 15.57% p.a.
Bank Zenit acts as an arranger, underwriter and a payment agent of the issue. Fitch Ratings has assigned a national long-term rating of 'A- '.
The bond placement syndicate was joined by MBRD, Nomos Bank, Russ-Bank, Promsvyazbank, and Center-invest as co-organisers.
The issue matures in 5 years and the bonds bear 10 half-year coupons. The execution of put option on this issue will take place on 08 July, 2010.
Bank Zenit was formed in 2005 and was the 27th largest Russian bank at end Q1 of 2009. It focuses primarily on corporate and investment banking, but is also developing private and retail businesses.