Сredit Europe Bank Ltd. is creating a market precedent

29.06.2015

Jun 16 2015, OOO “SFO Evropa 14-1A” closed the book of RUB 7.8 bln Senior Tranche ABS issue pledged by car loans portfolio of Credit Europe Bank Ltd.

The debut Russian non-mortgage issue and the first one issued according to Russian law, was warmly welcomed by the market and created the path for both the upcoming issuers and emerging class of long-term strategic investors.

The success of the issue was driven by high quality of the pledged portfolio, which is reflected by the investment ratings assigned (Moody’s Baa3 and S&P BBB-, both above the sovereign), as well as by the interest of the market towards the newly introduced instrument.

Due to high interest from investors the pre-marketed range of 13.25-13.75% was reduced by 50 bps before the book opening. Within one day the book was oversubscribed and eventually priced at the lower end of the range, at 12.75% (261 bp premium to respective OFZ). The vast majority of investors consisted of commercial banks and asset management companies.

Issue’s tenor is 2 years.

Credit Europe Bank Ltd. remains committed to Russian market and is pleased to be the pioneer in creating a new type of asset aimed primarily at local investors.

The issue was arranged by Gazprombank and Raiffeisenbank.