foir print

21.06.2011

Center-Invest Bank raises RUR2.5bn for the modernization of southern Russia

On 21 June Center-Invest Bank sold RUR2.5bn of commercial papers. Total demand exceeded the initial offer size by three times, at RUR4.4bn. The bonds mature in 2014, the coupon rate is 8.4%, and there will be a put option after 1.5 years. The bank will use the funds raised to implement its strategy for the modernization of southern Russia’s SMEs.

The book was closed on bids for Center-Invest’s RUR2.5bn three-year bond issue on 17 June 2011.

The bank’s Board of Directors decided to issue the bonds in response to the sustainable growth seen in the real economy this year. In line with our sustainable development model, all of the loan funds will be used to finance the real sector, rather than for speculative purposes. “Our bond issue gives investors a very important, positive signal that the economy of southern Russia has overcome the crisis,” says President and Chairman of the Board of Directors of Center-Invest Bank, Dr. Vasily Vysokov.

The issue organisers note that investors are attracted to Center-Invest by its international shareholder structure, its high international and national ratings, its commitment to being a socially responsible business, its five-year sustainable development strategy, its large market share in southern Russia, and its focus on lending to the SME sector.

Center-Invest Bank’s strategy for the modernization of SMEs in southern Russia encompasses a range of measures designed to enable companies to obtain world-class technology and equipment for the production of globally competitive goods and services. Our strategy has been praised by leading SMEs in the Rostov region and it is being used as a basis for training students and specialists in economics and finance. Moreover, the strategy is being implemented successfully: since the beginning of the year, Center-Invest Bank has made 5,800 loans totalling RUR26bn. More than 10% of our loan portfolio comprises loans for modernization projects that will allow our customers to grow their businesses by 30-40% a year.