International Bank for Economic Cooperation places second ruble bond issue
On June 15, 2020, IBEC successfully placed second bond issue on the Moscow Exchange (series 001R-02). Investors reacted positively – the issue with a total nominal value of 5 billion rubles was fully subscribed.
The day before the placement, the ACRA rating agency equated the expected credit rating of the new issue with the IBEC rating of AAA (RU) and set it to eAAA (RU). With an initial benchmark coupon rate in the range of 6.15-6.25%, which corresponds to an effective yield to offer of 6.24-6.35%, the order book was closed with a coupon rate of 6.20% (YTM after 4 years - 6.30%). The placement was organized by PJSC “MOSCOW CREDIT BANK”, PJSC ROSBANK, JSC “Sberbank CIB” and PJSC “Sovcombank”.
“We positively evaluate the results of the past placement, especially given the current macroeconomic turbulence in capital markets. Since mid-April, the Russian market began to show recovery against the backdrop of soft monetary policy of the Bank of Russia and the stabilization of the ruble. We closely monitored the development of the situation and decided to take advantage of such favorable conditions. I would especially like to note the increase in the bonds term to maturity, which provides us with more opportunities on financing the projects in the member states of the Bank”, – said Denis Ivanov, Chairman of the IBEC Board.