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Bank "Orient Express" is trying to take 5 billion rubles for 5,5 years
Vostochny Express Bank has started placing subordinated bonds. The volume of the issue will be 5 billion rubles. at a rate of 18% per annum. This is happening against the background of the flight of investors from the bonds of retail banks - RBC reports.
Orient Express is placing ruble-denominated subordinated bonds for a period of 5,5 years, the coupon rate is 18%. On Wednesday, the preemptive right expired, in the coming days the issue will be offered to everyone, a source in one of the investment banks, a source in one of the investment funds told RBC, and a source in the Orient Express told RBC.
According to the interlocutor of RBC, so far none of the current shareholders of the bank has exercised their preemptive right. The largest shareholders of Orient Express are Igor Kim, who owns 13,84% of the shares, the chairman of the board of directors of the bank Sergey Vlasov (11,84%), the Russia Partners funds (6,97%) and Baring Vostok (33,88%), as well as IFC (11,87%).
Russia Partners and Baring Vostok declined to comment, RBC reports.
In response to a request from RBC, IFC advised to contact the bank, stating that "all information will be disclosed in due time."
“The final results of the placement will be announced after December 18,” said Alexander Tsakunov, Director of the Corporate Finance Directorate of Orient Express Bank. “We expect that most of the issue will be bought by investors”.
BCS analyst Yulia Safarbakova says that the yield on these Orient Express securities is significantly lower than the market. “Now the“ old ”dollar-denominated Eurobonds of such banks as TCS or HKF are traded with a yield of close to 20% per annum, and this is in dollars,” she says. “Given the growing risks in the banking sector, the premium for ruble-denominated securities of such maturity should be significantly higher.”
According to the terms of the issue, the conversion of bonds into shares can be made if a reorganization procedure begins with the bank or the capital adequacy of the first level (Н1.1.) Drops below 2% (according to 1 November this indicator was 8,05%).
Expert RA analyst Pavel Samiev says that the market segment in which Orient Express operates now looks worse than the rest. “All banks specializing in servicing retail clients have significantly deteriorated the quality of their loan portfolios, and their margins are decreasing. All this puts pressure on their capital, ”he says. However, Samiev notes, the financial performance of Orient Express looks better than that of many other retail banks.