Promsvyazbank could issue 5-yr subordinated Eurobonds
MOSCOW. Nov 9 (Interfax) - Promsvyazbank is thinking of issuing five-year subordinated dollar-denominated Eurobonds, a source at a western investment bank told Interfax.
"This, as far as we understand, is one of the options that Promsvyazbank is considering," the source said.
Promsvyazbank is currently meeting with investors in Europe. The bank claims this is a non deal road show, one that does not necessarily result in a placement.
A trader at a major Russian investment bank told Interfax that he thought Promsvyazbank might have decided to borrow on the market in connection with an impending rating upgrade, after the European Bank for Reconstruction and Development (EBRD) buys in. Reports have said the EBRD would buy some of an additional share issue and own 11.75% of Promsvyazbank.
The banker also said this was not a bad time to enter the Eurobond market in the wake of the Federal Reserve's meeting that confirmed a policy of keeping interest rates as low as possible.
Reports last week said Citi was arranging the non deal road show for Promsvyazbank.
The bank has six outstanding Eurobonds maturing in 2010-2018. The closes to maturity is $200 million in LPN in October 2010.
The bank was Russia's 11th largest by assets, according to the Interfax-100 ranking at the end of the third quarter of 2009.