Egidaco Investments Plc, the 100% parent company of TCS Bank, is pleased to announce that TCS Bank has successfully priced a US$250m three-year Reg S Eurobond with a 10.75% coupon. The offering was oversubscribed, with substantial demand from investors in Russia, Europe and Asia. “Thanks to strong demand we were able to increase the size of the Eurobond from our initial target of US$200m,"TCS BankPresident Oliver Hughes said. "We achieved a well diversified order book, with orders from more than 70 investors, and were able to price the transaction in the middle of our initial guidance range." The proceeds will be used to grow TCS Bank's credit-card portfolio. The bank is well on track in 2012 to date to double its credit card portfolio for the third year running, while maintaining its high underwriting standards. The portfolio expanded by 57% in H1 2012 to US$1.1bn, up 87% year on year. "While maintaining our growth momentum, we have strictly observed our conservative provisioning policy," Oliver Hughes said. "Our equity now stands at over $225m, and we are continuing to generate capital through strong top-line and bottom-line growth, underpinned by our agile, compact business model." Alfa Capital Markets, Citigroup and JP Morgan acted as joint lead managers for the Eurobond. Promsvyazbank was a co-manager on the transaction. About Tinkoff Credit Systems Tinkoff Credit Systems is Russia's first online only bank and fifth largest credit card issuer, with more than 2.3m cards issued. In addition to the Eurobond priced yesterday,TCS Bankhas a US$175m Eurobond due 2014 and a SEK550M Swedish bond due 2013 as part of its strategy to maintain a diversified funding base, which also includes retail deposits and a domestic bond issuance programme. The bank is rated B/Positive by Fitch and B2/Stable by Moody’s. TCS Bank reported IFRS net income in H1 2012 of US$52.3m (against US$68.4m in FY 2011), with an ROAE of 66% and annualised ROA of 9.5%. The bank's equity grew by US$82.1 to US$199.2 during the period. Egidaco Investments PLC (www.eginvestments.net) is the sole shareholder of the Russian bank “Tinkoff Credit Systems”. Bank «Tinkoff Credit Systems» is Russia's first bank, specialising in credit cards and online consumer lending. The bank was founded by the renowned Russian entrepreneur, Oleg Tinkov. He was later joined by two financial investors, Goldman Sachs (in 2007) and Vostok Nafta (in 2008). In May 2012, Baring Vostok Private Equity Fund IV also became a shareholder. Based in Moscow, TCS Bank issues credit cards to customers in all of Russia's regions, including smaller, underserved cities. TCS operates a branchless model, attracting customers online and through direct mail, and servicing customers through its cutting edge Internet bank and call centre.
TCS Bank places US$250m three-year Eurobond with 10.75% coupon
| Source: Egidaco Investments PLC