On 12 February 2021, MOEX added OOO Home Credit Bank bonds worth five billion roubles to its list of fixed income securities, with BCS Global Markets as the lead manager. As part of bookbuilding, investor demand totalled 10 billion roubles, reflecting active interest, which helped to set the coupon rate at 6.85%, the lower bound of the 6.85-7.00% range, with the yield to maturity at 7.03% per annum. The yield spread to the OFZ curve (G-spead) is 183 bps. The maturity is set at five years, with a three-year put option.
OOO Home Credit Bank (Fitch – BB-, АКRА – A(RU), Expera RА – ruA-) is one of Russia’s biggest retail financial institutions, a subsidiary of Home Credit Group from the Czech Republic controlled by businessman Petr Kellner (part of PPF Group). Since 2008, it has embarked on an effort to move towards a universal retail offering. Currently, the key funding source is retail deposits. The bank has an omnichannel network of retail sales both offline and online. Presence in all Russian regions, as well as long-standing and sustainable partnerships, ensure leadership for the bank in the retail segment. Home Credit Bank has a high CAR level (Н20.0 16.2%, which is significantly higher than regulatory requirements) and a stable funding base (>80%) underpinned by a high share of term deposits. According to IFRS reports for 9M2020, its assets totalled 308 billion roubles, and equity stands at 89 billion roubles.
The bond issue will be assigned the following bond ratings: АКRА – A(RU) and Expert RА – ruA-.
A message from management of BCS Global Markets
The continuously evolving nature of the global coronavirus situation has meant we at BCS Global Markets (BCS) are taking all necessary steps to keep business disruption to an absolute minimum.
Effective from today (Wednesday 18th March) employees from all divisions of the business based in our Russia, UK, USA and Cyprus offices who can work from home without creating any even minor possible risk for business continuity of the Group will be working remotely. It is very much business as usual at BCS. Our employees are equipped with secure access to our systems and will follow their normal working hours, keeping in regular contact with their colleagues and clients.
Despite ongoing disruption caused by COVID-19, we want to also assure you that following a sustained period of positive performance, our capital and liquidity position remains very strong. The business is well-placed to meet any subsequent financial challenges and will continue to go above and beyond for our clients.