On March 13, 2013, the Public Joint Stock Company “State Savings Bank of Ukraine” closed the orderbook and finalized the deal of issuing USD 500 mln 5-year Eurobond due 2018 with a coupon rate of 8.875%.
The bonds were rated B and B3 by Fitch and Moody’s, respectively. Leading international investment banks Credit Suisse, Deutsche Bank and JP Morgan acted as the lead-managers. The notes will be listed on the Irish Stock Exchange.
Significant interest in Oschabank’s bonds was confirmed by the strong and diversified investors’ demand with approximately 100 final orders coming from all key investor location areas - UK (31%), Europe (29%), US Offshore (16%), Switzerland (15%), Asia (7%) and other (2%). Asset managers and banks took the major part of the deal (66%) and (26%), respectively, the rest was taken by hedge funds, insurance and pension funds (8%).
The new issuance, alike the bank’s existing Eurobonds due 2016, will be included into the EMBI+ index.
“Taking into account the continuing volatility on the international capital markets, overall concerns on the global economy development and fluctuating news background, affecting risks perception on Ukraine and Ukrainian issuers by international investors, Oschanbank chose the right “window” to enter the market – when its existing bonds due 2016 were trading at its peak levels for the last 18 months. Effectively performed marketing enabled to build a well structured and qualitative orderbook represented by key institutional anchor accounts and close the deal within one day with the acceptable coupon rate. Received proceeds will be used for the further development of the Bank’s business” – Denys Kiryeyev, First Deputy Chairman of the Management Board.
The Public Joint-Stock Company “State Savings Bank of Ukraine” is one of the largest financial institutions in Ukraine, having the most extensive branch network in the country. Oschadbank is the only Ukrainian bank that enjoys the unique state guarantee on all retail deposits. JSC “Oschadbank” is the most reliable bank according to the “Korrespondent” magazine and the investment company “Dragon Capital” and also holds its leadership in deposit reliability rating according to the Internet-magazine “Real economy”. License of the National Bank of Ukraine No. 148 as of 05 October 2011. Official website – http://www.oschadnybank.com. Contact-center: 0 800 210 800.