Media Room
12 Feb 2021
Home Credit Bank bonds placement

On 12 February 2021, MOEX added OOO Home Credit Bank bonds worth five billion roubles to its list of fixed income securities, with BCS Global Markets as the lead manager. As part of bookbuilding, investor demand totalled 10 billion roubles, reflecting active interest, which helped to set the coupon rate at 6.85%, the lower bound of the 6.85-7.00% range, with the yield to maturity at 7.03% per annum. The yield spread to the OFZ curve (G-spead) is 183 bps. The maturity is set at five years, with a three-year put option.

OOO Home Credit Bank (Fitch – BB-, АКRА – A(RU), Expera RА – ruA-) is one of Russia’s biggest retail financial institutions, a subsidiary of Home Credit Group from the Czech Republic controlled by businessman Petr Kellner (part of PPF Group). Since 2008, it has embarked on an effort to move towards a universal retail offering. Currently, the key funding source is retail deposits. The bank has an omnichannel network of retail sales both offline and online. Presence in all Russian regions, as well as long-standing and sustainable partnerships, ensure leadership for the bank in the retail segment. Home Credit Bank has a high CAR level (Н20.0 16.2%, which is significantly higher than regulatory requirements) and a stable funding base (>80%) underpinned by a high share of term deposits. According to IFRS reports for 9M2020, its assets totalled 308 billion roubles, and equity stands at 89 billion roubles.

The bond issue will be assigned the following bond ratings: АКRА – A(RU) and Expert RА – ruA-.