October 7, 2019 / 6:23 PM / 10 days ago

UPDATE 1-Russia's Alfa Bank issues $400 mln Eurobond

(Adds size of the issue and buyers, updates source)

MOSCOW, Oct 7 (Reuters) - Russia’s Alfa Bank, one of the country’s biggest privately-held banks, has issued a $400-million Tier 2 Eurobond, it said in a statement on Monday.

Alfa Bank has previously said it would borrow in roubles this year to boost its capital if needed, after raising 10 billion roubles (about $154 million) through a senior rouble Eurobond.

“In the last few days, we have held a series of intensive meetings with investors in Switzerland and conference calls with global investors,” CFO Alexey Chukhlov said in a statement.

“Having received clear confirmation that investors are interested in acquiring Alfa Bank’s subordinated Eurobond, we began to closely monitor the market situation in order to launch the deal at the best possible moment.”

Demand exceeded the initial size of the deal by more than 1.5 times, the bank said. It plans to use the funds to increase its loan portfolio.

More than 60 institutional investors and brokerages from Europe, Britain, Switzerland and Asia took part in the deal, and Russian investors showed “significant interest,” Alfa added.

After launching with initial price thoughts in the 6% area, the bank tightened guidance to 5.95%, IFR, Refinitiv’s capital markets news service, reported earlier on Monday. The 10.5-year bond is non-callable for five-and-a-half years.

The issue was organised by Alfa Bank, JP Morgan and UBS. (Reporting by Olzhas Auyezov and Tatiana Voronova; writing by Olzhas Auyezov and Polina Devitt; editing by Jane Merriman and Deepa Babington)

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