News

Fifth Bank ZENIT RUR 5.0 Billion Bond Issue Successfully Placed

On June 10, 2008, Bank ZENIT completed the placement of its fifth bond issue with a total par value of RUR 5.0 billion maturing in 5 years (State Registration Number 40503255В dated November 26, 2007).

The bonds were placed at MICEX Stock Exchange by open subscription in the form of a tender for the determination of the first coupon rate. During the tender, investors filed 114 bids for a total of RUR 6.6 billion. The range of first coupon rate was 8.99%-10.49% p.a. The first coupon rate was set at 10%, the second and third coupon rates equaled the first coupon rate. Efficient yield of the bonds against a year-and-a-half offer was 10.25% p.a.

Bank ZENIT acted as the arranger, underwriter and payment agent of the issue.

The syndicate created for the placement of Bank ZENIT bonds consisted of:
Lead Co-Arranger of the issue: Russian Credit Bank.
Co-Arrangers of the issue: Savings Bank of the Russian Federation, Bank Petrokommerz, Managing Company Troika-Dialog, Project Finance Bank, and GK REGION.
Underwriters of the issue: Industrial Communications Bank (Promsvyazbank), Financial Company OTKRYTIE, Alpha-Bank, ING BANK (EURASIA).
Co-Underwriters of the issue: Joint Stock Bank ORGEXPOBANK, Russian Development Bank, Gas and Energy Industry Bank (Gazenergoprombank), Investment Commercial Bank Sovcombank, Eurofinance Mosnarbank, RONIN.

According to the documents of the issue, the aggregate par value is RUR 5.0 billion, maturity is 5 years. The bonds have ten semiannual coupons. The offers related to the bonds of the issue will be executed on December 10, 2009.

All documents of the fifth Bank ZENIT bond issue can be viewed on the Internet

FOR REFERENCE:

Banking Group ZENIT was formed in 2005 as a result of the purchase by Bank ZENIT of a controlling stake in JSB Devon-Credit (OJSC). In 2007, the Banking Group acquired OJSC Lipetskkombank and JSB Sochigazprombank LLC (later renamed into Bank ZENIT Sochi). According to the consolidated statement of the Banking group for 2007, made in accordance with IFRS, the equity capital of the Banking group amounts to $738 mn, the assets amount to $6,645 bn. The Group provides a full-scale range of banking services in the following areas: comprehensive services to the corporate clients, retail services, private banking, investment banking and interbank business. Banking Group ZENIT is represented in 21 of 83 regions of the Russian Federation; its own retail network consists of 150 points of sale. The Group has created a wide international correspondent network of banking partners, with co-operation from more than 80 international institutions in Europe, America and Asia. Bank ZENIT is currently rated Bа3/Stable by Moody's and B/Positive by Fitch. Being an active debt market player, Bank ZENIT arranged 8 international syndicated loans, 2 Eurobond issues (the debut issue was repurchased in 2006) and 4 ruble bond issues (the debut issue was repurchased in 2007).