On February 10 Alfa Bank closed the book for an issue of ruble-denominated Eurobond worth Rub 10 bln with 5-year maturity. The coupon rate was set at 9.25%.

As Alfa Bank said in a press release, demand for the bank's Eurobond on the part of major international investors topped Rub 20 bln, allowing the bank to set the final coupon rate for Rub 10 bln debt at the lower bound of the initial 9.25-9.5% range. The final order book consisting of over 30 orders includes investors from various financial centers in Europe, Asia, the Middle East and Russia.

"We are pleased with demand on the part of investors and believe that the Eurobond issue was floated successfully and at the right time. In addition to the fact that we managed to raise 5-year ruble debt at a rate below the one that we offered when placing 3-year local bonds at the beginning of the year (9.45%, Rub 10 bln), we have also fully attained our objective of drawing tangible foreign demand to the deal as foreign orders accounted for 72% of the Eurobond issue," noted Alfa Bank deputy management board chairman and CFO Alexey Chukhlov.

According to him, "special attention should be paid to the fact that in April 2013 Alfa Bank, after having approved a Eurobond program, issued 3-year ruble-denominated Eurobond (worth Rub 10 bln), which until now remained the first and the only issue of ruble-denominated Eurobond among Russian private banks. Since then a lot of events have taken place, causing heavy volatility in financial markets. However, after having assessed the long period of the ruble's stability against major currencies, Alfa Bank decided to return to the ruble-denominated Eurobond market, and again became the first and the only Russian financial institution in this market after nearly four years".

"We expect our issue to become a benchmark for subsequent ruble-denominated instruments to be floated by Russian issuers in international capital markets," the Alfa Bank executive said in conclusion.

The Eurobond was floated by Ireland-based Alfa Bond Issuance PLC as part of the LPN program under RegS. The floatation was arranged by Alfa Bank and JP Morgan.