Russia’s TRANSCAPITALBANK (Moscow) has placed a debut issue of loan participation notes (LPN). Yield on the securities stands at 9.125% annually. The entire issue is worth $175 million, while each bond has a nominal value of $100,000. The Eurobonds were issued under the S rule. ABN AMRO and DEUTSCHE BANK are the issue’s lead managers. The LPNs will trade on the Irish Stock Exchange, while settlements will be made via the Euroclear/Clearstream system. As the bonds were placed, demand exceeded supply by nearly four times, prompting managers to scale up the issue from $150m to $175m. As a result, yield on the securities went down from between 9.25% and 9.5% annually to 9.125% a year.

Source: GAZETA.RU, April 27, 2007