Rosbank $225m notes due 2009
CSFB and Merrill Lynch were mandated lead managers
In a highly innovative twist, Rosbank’s $225m notes issue was the first Russian offering to be backed by future hard currency credit card voucher receivables. This structural enhancement significantly improved Rosbank’s credit story.
The enhancement was important given the market environment at the time of launch: it was the seventh bank offering from Russia in a two-month period. In addition, with Russian corporate spreads near historical lows, investors were becoming concerned about the short and medium-term price performance of the issue.
The issue was 2.6 times oversubscribed compared with the originally planned $150m, enabling the deal to be upsized to $225m. An unusually broad order book included more than 60 investors from Europe and Asia, with not just traditional emerging market demand but also some asset-backed security and high-grade buyers.
