BELAGROPROMBANK REPAID THREE-YEAR CLN ISSUE THAT WAS TRADED ON INTERNATIONAL CAPITAL MARKET

On November 1st, 2013 JSC Belagroprombank fully and in time repaid the issue of Credit Linked Notes (CLN) in the amount of USD 100 mln and USD 5.14 mln of the semi-annual coupon payment.

The issue was launched in October 2010 three months after the debut sovereign Eurobond issue. The CJSC “Investment Company “Troika Dialog” [1] (Russian Federation) and The Royal Bank of Scotland plc (Great Britain) acted as Lead Managers. More than 15 financial institutions, including belarusian and international financial companies and banks from Moscow, London, Zurich, Amsterdam and other financial centers acted as initial investors. The funds received were applied towards general corporate purposes, including providing loans to the largest enterprises of Belarus. The total sum of coupon payments made up more than USD 30 mln. The issue was the second CLN deal for JSC Belagroprombank.

As Siarhei Chuhai, Deputy CEO of JSC Belagroprombank, noted “Belagroprombank has made a good progress across a number of diversified funding streams, including indeed the debt capital markets. The CLN became another part of the strategy further increasing diversification of funding types. Not only was the issue significantly longer dated (three years) than most borrowings on Belarusian market, but it was also listed on Frankfurt Stock Exchange and traded on secondary market. We stay on the only Belarusian corporate borrower whose debt instruments were circulated on international capital market. Finalizing of the deal occurred only because of the close relationship and ongoing dialogue with our investors and partners. The success of this issue further reinforced the importance of such relations which we work hard to foster”.

[1] Currently The CJSC “Sberbank CIB”