ACRA assigns “A + (RU)” rating to GPB subordinated bond issue for $ 250.25 million

ACRA assigns “A + (RU)” rating to GPB subordinated bond issue for $ 250.25 million

ACRA assigns

The Analytical Credit Rating Agency (ACRA) has assigned an A + (RU) rating to the issue of Gazprombank's (MOEX: GZPR) (GPB) subordinated bonds worth $ 250.25 million of the GPB-T2-03D series, the agency said in a press release.

As noted in the message, the inclusion of funds raised within the framework of the bond issue in the sources of additional capital has been agreed by the Bank of Russia.

In accordance with ACRA's methodology, the expected credit rating of this type of issue is set three notches below the final rating of GPB, which is at “AA + (RU)”.

“The credit rating of Bank GPB (JSC) is due to a strong and stable business profile, an adequate position in terms of capital adequacy, an adequate risk profile and a satisfactory position in liquidity and funding. The rating is additionally supported by the critical systemic importance of Bank GPB (JSC) for the Russian financial market. “- said in a press release from the agency.

The collection of applications for the issue took place from June 26 to June 30. The benchmark for the coupon rate before the date of the call option was initially announced at no more than 5% per annum. The call option date is 5.5 years from the date of the placement.

The 1st coupon rate is set at 4.7% per annum. The volume of the issue was increased from a nominal $ 200.375 million.

The face value of one bond is $ 175,000.

The circulation period of the issue is about 10.5 years.

For the last 5 years of bond circulation, the coupon rate will be calculated using the formula, depending on the yield on the 5-year US Treasury bonds. Semi-annual coupons.

The issue is intended for qualified investors, the technical placement was held on July 3 by private subscription.

The bank acted as an organizer and placement agent independently.

The Bank of Russia registered the issue in February. As noted in the message of the Central Bank, the series contains certain conditions that satisfy the concept of a subordinated loan.

The bonds were placed under the GPB-T2 program, which the Bank of Russia registered at the end of December 2019. The volume of the program is 150 billion rubles. The program itself is unlimited, the maximum circulation period for bonds under the program is 60 years.

Currently, there are 31 issues of Gazprombank's exchange-traded bonds in the amount of 240.9 billion rubles and five issues of classic bonds worth 47.1 billion rubles and one issue of classic bonds for $ 250.25 million in circulation.

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