Alfa-Bank (Ukraine) conducted additional issue of US$185 mln in Eurobonds

After additional issue the total volume of Alfa-Bank debut issue of three-year Eurobonds reached US$345 million. Thus, this issue ranked fifth in terms of volume among nine Eurobond loans, implemented by Ukrainian banks.

Part of Eurobonds of US$160 million was placed in December 2006. Additional issue of bonds in the amount of US$185 million was carried out in January-February 2007. Total amount of applications for current additional placement reached US$320 million. This allowed to decrease the coupon of loan placement to 8.92% per annum, which is 83 points lower than the coupon of December placement of 9.75% per annum.

Decrease of coupon rate was facilitated by attractiveness of Eurobonds for foreign investors, which is confirmed by growth of Eurobonds price on secondary market from 100% level in December to 102,4—102,9% by the middle of February. Alfa-Bank dynamic development makes the major impact on growth of its attractiveness: in the year 2006 bank’s assets increased by 195%, along with the general rate of banking system growth for the same period totaling 59%.

“Increase in the volume of issue to US$345 will uplift the liquidity of bank’s Eurobonds on the secondary market, which will further influence the growth of their market price”, — announced Andrey Bobyshev, Head of Treasury and Capital Markets, Alfa-Bank.

Investors from Great Britain, Russia, Switzerland, Austria, Germany, Scandinavian countries and countries of Asia participated in Eurobonds placement. Among principal buyers were investment funds, banks and insurance companies.

UBS Investment Bank was the bookrunner and the lead manager of the issue. Besides, OJSC Alfa-Bank (Russia) and VTB Bank Europe acted as lead managers.

Investor Relations