18 Jan 2021
Sova Capital has opened the Russian Eurobond 2021 season as Joint Bookrunner on Credit Bank of Moscow’s (MKB) EUR600mm 5-year senior Eurobond offering at 3.1% coupon.
The coupon rate is the lowest ever for a 5 year+ deal by a sub-investment-grade rated financial institution from CEEMEA region, while the issue is the largest ever private sector EUR-denominated bond offering from Russia.
The order book totaled more than EUR 1.1 bln, enabling MKB to fix the coupon rate at a record-low 3.1% and to upsize the issue from the initially planned EUR500mm to EUR600mm. The Eurobond drew interest from a wide range of international investors, including from regions that traditionally have not been regular participants in EUR-denominated issues. Investors from continental Europe (30%) were the largest group, followed by the UK (20%), Switzerland (12%), US (7%), as well as Southeast Asia, Middle East, and Latin America (2%). Russian and CIS investors accounted for 29% of the book.
“We’re delighted to have started 2021 on a strong note and to help MKB achieve outstanding results with this offering, attracting strong interest from a broad pool of international investors. We look forward to more successful transactions throughout 2021 as we continue to build up Sova Capital’s presence in global capital markets and reputation as a go-to advisor for emerging markets clients,” commented Alina Sychova, Head of Capital Markets Origination at Sova Capital.