TCS Bank placing $175 mln in 3-yr Eurobonds at 11.5%
MOSCOW. April 14 (Interfax) - The bank Tinkoff Credit Systems (TCS Bank) is placing a $175-million issue of three-year Eurobonds yielding 11.5% per annum, a company press release says.
As reported, the yield guidance on these bonds was 11.5%-11.75%.
Placement is being conducted according to Reg S rules.
Sixty-three investors from Europe, Asia, and Russia have taken part in the issue, the bank's President Oliver Hughes is cited by the release as saying.
The proceeds raised will be used to grow the bank's credit-card portfolio. TCS Bank plans to double that portfolio to 20-22 billion rubles by the end of this year, Hughes said.
The Eurobond placement is part of the TCS Bank's strategy to diversify sources of growth-financing. That strategy had the bank begin attracting private citizen deposits in Moscow and St. Petersburg last year, and by the middle of April this year the bank had grown those deposits to 6 billion rubles. The bank began a program of ruble-denominated bond placement last summer, selling for issues for another 6 billion rubles, the release says.
TCS Bank launched on April 7 a Eurobond road show, the organizers of which were Citigroup and Goldman Sachs International.
Hughes told the press that TCS's overall borrowing this year will come to $200-$300 million. He said the lending organization is also planning to place ruble-denominated bonds this fourth quarter.
The last time TCS placed Eurobonds was in June of 2008, when it raised EUR 70 million at 18% per annum. The bank redeemed these securities ahead of term in September of last year.
TCS is a monoliner bank specializing in working with credit cards. Founder Oleg Tinkov owns 68% of the bank's stock, the fund Vostok Nafta Investment 17%, and Goldman Sachs 15%.
The bank ended 2010 in 167th place by assets on the Interfax-100 Russian bank ranking.
