NOMOS-BANK to place subordinated Eurobonds for 350 mln U.S. Dollars

The book of NOMOS-BANK’s sixth Eurobonds issue was closed on 14 April. Eurobonds will be placed in the form of Loan Participation Notes (LPN) for a total amount of 350 mln U.S. Dollars with a 5.5 year maturity. LPNs will be issued by NOMOS Capital Plc., a special company which the Bank has registered in Ireland and used for the previous issues of Eurobonds.

The semi-annual coupon rate was set at the level of 8.75% per annum. The bonds will be listed on the Irish Stock Exchange. The final closure of the deal is expected to take place next week.

“The Bank’s initial plan was to place 260 mln U.S. Dollars, — notes Roman Pivkov, Senior Vice-President of NOMOS-BANK. — The demand has by large surpassed the anticipated deal’s volume and our expectations. Despite the lowering of return targets during pre-marketing process, the demand at the lower pricing end exceeded 600 mln U.S. Dollars. Following the appraisal of investors’ quality and the depth of demand, the Bank decided to increase the issue volume to 350 mln U.S. Dollars”.

More than 80 investors from 14 countries submitted bids. Lead-managers of the issue are UBS, VTB Capital, and NOMOS-BANK.

Earlier, NOMOS-BANK has entered the Eurobonds market many times. Since 2004, the Bank has placed four senior and one subordinated issue. Three senior issues have been redeemed; the others are still in circulation. The previous placement occurred in December 2009, when NOMOS-BANK obtained 200 mln U.S. Dollars for 3 years at 9.25% interest rate.