Sberbank could place 10-yr subordinated USD notes by end week - source
MOSCOW. Feb 12 (Interfax) - Sberbank plans to place ten-year dollar-denominated subordinated Eurobonds before the end of this week, a financial market source told Interfax.
The source said the bonds would probably have a call option in five years, but it was also possible the bonds would be classic ten-year bonds without an option.
Pricing is expected on Thursday or Friday if the market situation is favorable, the source said.
Sberbank is holding a road show for the bonds in the United States and Europe from February 10-12. Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Sberbank CIB are running the offering.
Sberbank last issued bonds abroad in May last year, when it placed $1 billion in ten-year subordinated bonds at 5.25% pa in demand of $1.6 billion, chiefly from investors in Switzerland, the UK and U.S.
Sberbank is one of the first Russian banks to have placed subordinated Eurobond under new rules in keeping with Basel III regulations: the inserted a loss absorption clause, whereby investors risk a write-off if the bank's core capital adequacy ratio falls below 2% or if the Deposit Insurance Agency initiates bankruptcy prevention measures against the bank.
Sberbank was Russia's largest bank by assets, according to the Interfax-100 ranking at the end of 2013.
