REG - TCS Grp Hldg PLC - Tinkoff Bank completes RUB 3 bn bond offering <Origin Href="QuoteRef">TCSq.L</Origin>

TCS HoldingAnnouncement

23/06/2016 17:50

RNS Number : 1412C
TCS Group Holding PLC
23 June 2016
TinkoffBank successfully completes RUB3bn bond offering with a couponof11.7%
Moscow, Russia- 23June2016. TCS Group Holding PLC (TCS LI) (the 'Group'), Russia's leading provider of online retail financial services, including Tinkoff Bank and Tinkoff Insurance, today announces that TinkoffBank has successfully completed the placement of its BO-07 series exchange bonds for a total amount of RUB3bn priced at11.7% per annum. 
On 23June2016, TinkoffBank successfully closed the order book for its BO-07 series exchange bonds. The RUB3bn offering has a maturity of 5years and a 1.5year put option.
TinkoffBank plans to use the proceeds of the offering to finance its business development.
The subscription kicked off on 23June2016 with the initial price guidance of 12.00-12.50%. The bond offering was 2.5 times oversubscribed, demonstrating strong investor demand that enabled the Bank to lower the price guidance twice. 
As a result, the order book amounted to RUB 7.6 bn and the coupon rate for the first 1.5 years was set at11.7%.
Sergey Pirogov, Vice President of Corporate Finance at Tinkoff Bank, commented: "We are delighted to come back to the Russian bond market after a three-year break. The strong investor demand for the offering allowed us to build a robust order book and achieve an attractive pricing. The success of this offering shows that the Russian bond market is open to attractive investment stories like ours." 
The offering was led by SberbankCIB and Sovcombank. 
The bond will be admitted to trading on the Moscow Exchange on 30June2016.
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For enquiries:
Tinkoff Bank
Darya Ermolina
Head of PR
+ 7 495 648-10-00 (ext. 2009)
d.ermolina@tinkoff.ru
Tinkoff Bank
Larisa Chernysheva
IR Department
+ 7 495 648-10-00 (ext. 2312)
ir@tinkoff.ru
FTI Consulting London
Elena Kalinskaya/Leonid Fink
+44 (0) 020 3727 1000

About the Group
TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. The Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers. 
Tinkoff Bank's product range includes credit, debit and prepaid cards, deposits, co-branded cards, and agent-based mortgage products. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card2Card instant money transfers).
As per its five-year strategy, the Group has the ambition to become a financial marketplace, offering both own brand and partner products.
As at 1May 2016, the bank was the second largest player in the Russian credit card market, with a 9% market share. As at 1April 2016, the bank issued over 5.8mcredit cards. The bank is well capitalised: its CBR N1 total capital ratio stood at 12.3% as at 1May 2016.
The Group's 1Q2016 IFRS net income amounted to RUB1.9bn.
In 2015, the Global Finance magazine named TinkoffBank as the Best Internet Retail Bank inRussia. In 2013, Tinkoff Bank was recognised as the Bank of the Year and the most profitable bank in Russia by the Banker magazine, the world's premier banking and finance resource, published by the Financial Times Group. 
Forward-looking statements
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and Tinkoff Bank. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. The Group and Tinkoff Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and Tinkoff Bank do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group and Tinkoff Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, Tinkoff Bank and their respective operations.

This information is provided by RNS
The company news service from the London Stock Exchange
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