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Bips & Pieces

Russian Agricultural Bank Sets a New Milestone with First Euro Perp Issuance by Russian FI

The state-controlled lender tapped the international markets for EUR150mn, upsizing from the initially planned EUR100mn issuance.

Jan 7, 2020 // 7:00AM

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.

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