Russian Agricultural Bank (RSHB) became the country’s first bank to issue a perpetual bond in Euros, in a signal that the diversification away from the US dollar will not be limited to the country’s Central Bank and the Finance Ministry, according to a report in Vedomosti.
As part of a move to boost capital reserves in alignment with Basel III requirements, one of Russia’s biggest lenders issued a EUR150mn perpetual subordinated bond with a closed book. The notes carry a call option of 5.5 years and a coupon of 5%, which is subject to change after the call date passes.
The bond comes as part of a EUR1bn worth issuance programme announced by the bank in June 2019 and, according to First Deputy Chief Executive Kirill Levin, should allow the agriculture-focussed lender to allocate around RUB100bn to supporting the sector.
