OREANDA-NEWS. On August 28, 2008 The tranche was issued as part of Probusinessbank’s USD 750 million Loan Participation Note program, reported the press-centre of Probusinessbank.

The issue has a two-year tenor and a 12.5% coupon: higher than in the previous year. The notes were issued at par value, as distinct from the previous issues at a discount.

Today there are two other tranches circulating at the market: a USD 200 million tranche maturing in September 2008 and a RUR 2 billion tranche maturing in 2010.

The securities were purchased by American, European and Asian investors. Initially the program was organized by the American BCP Securities company, however, this tranche was for the first time issued together with Credit Swiss Securities, acting as a co-lead manager.

Michael Zavgorodny, Vice-president of Probusinessbank, noted that the Life Group considers  this as a serious transaction, as the tranche was issued on the background of the recession at the global financial markets. "The issue price was affected not only by instability at financial markets. We arranged the issue in August – during the traditional holidays season in Europe and North America. Besides, several CIS-based credit institutions with a “B” rating had issued their bonds slightly before us at an overstated price.

We were forced to take their prices into consideration.  We managed to keep and expand a well-diversified investor base in these complicated situation, which serves an evidence of true confidence of western financial institutions to the Life Group”, - said Michael Zavgorodny.

BCP Securities’ President Randall Pike stated: "We are proud to bring together an issuer as solid as Probusinessbank with our institutional clients throughout the world that invest in emerging markets. The more our clients get to know the bank the more they like it, and this is clearly reflected in the progressive pattern of increasing issue sized over the past years".

Reference note:
In addition to the Moscow-based “Probusinessbank”, the Financial Group LIFE consists of “VUZ-bank”, Ekaterinburg, “Express-Volga” bank, Saratov, and Ivanovsky Oblastnoy Bank. The high quality of the LIFE Group strategy realization has been acknowledged internationally. 

The LIFE Group was the first Russian company to gain the award of the Balanced Scorecard Hall of Fame for executing strategy. Today the LIFE Group is represented by 185 offices in 47 regions of Russia. The Group firmly occupies its position in the list of Top-30 Russian banks by assets, ranks 26th in the ratings in terms of consumer loans portfolio, takes its place in Top-10 by loans to the small business companies. According to Fitch Ratings, Probusinessbank was assigned a “B-“ international credit rating.