Alfa-Bank has completed bookbuilding for an issue of term subordinated eurobonds meeting the Basel III requirements (Regulation 646-P of the Bank of Russia). The issue will amount to $350 million. A call option can be exercised in 5.5 years, and the issue will mature in 10.5 years, the bank informed.
The coupon rate for the first 5.5 years is fixed at 5.5% p.a. (with coupons to be paid every 6 months, which is the lowest subordinated dollar-denominated loan rate among the issues of Russian banks since 2014.
About 50 institutional investors from the US, Europe, the UK, Switzerland, Asia and Russia participated in the transaction. During book building, the bid decreased from 5.875% to 5.5%, with demand being almost 1.5 times above the initial transaction volume.
Alfa-Bank is the largest universal privately-owned bank in Russia. For 30 years, it has had leading positions in all banking segments. The bank's customer base reaches about 850,000 corporate clients and 18.7 million individuals. Alfa-Bank's development is based on the phygital model, combining digital innovations with an effective physical footprint, its network comprising 486 offices in Moscow and Russian regions, 900 cities and towns with courier delivery, and 27,900 of own and partner ATMs.
In 2020, according to the IFRS financial statements, total assets of Alfa-Bank Group, including ABH Financial, Alfa-Bank and its subsidiaries, amounted to $61.7 billion, the total loan portfolio was $42.7 billion, and the share capital reached $8.7 billion. Net profit amounted to $1,347 million.
