24 Jul 2012 09:25

Svyaznoy Bank aims to structure quarter of liabilities in bonds by 2014

MOSCOW. July 24 (Interfax) - Svyaznoy Bank intends for bonds to make up at least a quarter of its liabilities by the end of 2013, the lender's board chairman, Maxim Nogotkov said at a press conference on Monday.

The bookbuilding for the bank's debut bond issue of 2 billion rubles will probably begin this week, Boris Ginzburg, executive director and head of fixed income at Uralsib Capital, the coordinator of the bond offering, told Interfax after the press conference.

Nogotkov said the debut bond issue was just the beginning, and that the bank has big plans for public offerings.

"We very much want to have at least approximately 25% of our liabilities in market, public debt instruments by the end of next year," Nogotkov said.

Retail deposits currently make up 65-70% of Svyaznoy Bank's liabilities, the bank's deputy CEO and chief financial officer, Muratkhan Eldarov told Interfax. The bank intends to reduce this share to 50% in future, he said.

The Central Bank registered the debut bond issue of 2 billion rubles from Svyaznoy Bank, a subsidiary of the Svyaznoy Group, in February 2012, assigning a registration number of 40101961