TCS Bank places US$250m three-year Eurobond with 10.75% coupon
Tinkoff Credit Systems (TCS Bank) has successfully priced a US$250m three-year Reg S Eurobond with a 10.75% coupon. The offering was oversubscribed, with substantial demand from investors in Russia, Europe and Asia.
"Thanks to strong demand we were able to increase the size of the Eurobond from our initial target of US$200m," TCS Bank President Oliver Hughes said. "We achieved a well diversified order book, with orders from more than 70 investors, and were able to price the transaction in the middle of our initial guidance range."
The proceeds will be used to grow TCS Bank's credit-card portfolio. The bank is well on track in 2012 to date to double its credit card portfolio for the third year running, while maintaining its high underwriting standards. The portfolio expanded by 57% in H1 2012 to US$1.1bn, up 87% year on year.
"While maintaining our growth momentum, we have strictly observed our conservative provisioning policy," Oliver Hughes said. "Our equity now stands at over $225m, and we are continuing to generate capital through strong top-line and bottom-line growth, underpinned by our agile, compact business model."
Alfa Capital Markets, Citigroup and JP Morgan acted as joint lead managers for the Eurobond. Promsvyazbank was a co-manager on the transaction.