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Press releases | Archive 2006

RBC announces successful placement of $100m debut issue of credit linked notes

Moscow, May 30, 2006. - On May 26, 2006, MDM Bank and Aton Capital Limited closed the order book for the debut issue of CLNs for RBC in the amount of $100m.

The notes have a maturity of 3 years with the fixed coupon rate of 9.5% p.a. The notes provide for the put option in 2 years at par and the call option at 103% of the par value from the issue date to December 31, 2006, 102.5% during the year 2007, 101.5 % from January 1, 2008 to June 7, 2008 and at par from June 7, 2008 onwards. Dresdner Bank AG will act as the issuer of the notes. The notes are issued on the back of a loan extended by Dresdner Bank AG to RBC Investments (Cyprus), the loan will be guaranteed by OJSC RBC Information Systems and CJSC RBC-TV. Proceeds from the loan will be used to finance RBC's development via acquisitions in the media industry and the implementation of the company's own projects.

The lead managers received purchase orders for the amount of $122.35m from 25 investors. 53.5% of the issue was distributed among foreign investors, and 46.5% was sold to domestic investors. Furthermore, orders from investment funds and asset managers comprised 36% of the issue and 64% were orders from banks.

Roadshow presentations were organized in London, Zurich, Hong Kong and Singapore from May 17 to May 23, 2006. Despite difficult financial market conditions, investors demonstrated a significant interest in the company's securities.

RBC Chairman and CEO German Kaplun highly appreciated the results of the transaction. "It's the first time we raise a considerable amount of funds on the debt capital market. We have extensive experience of interaction with equity investors, now we are pleased that debt investors showed a great interest to this transaction. It will allow us to achieve an optimal capital structure, which is essential to maintaining the high rate of the company's growth", he said.

According to Anton Kirukhin, the Director of debt capital markets division of MDM Bank, an unfavorable market situation has not prevented the lead managers from building a diversified order book. "The Russian media industry is new to the international debt capital market, but we feel a significant investors' interest to it. First of all it is explained by remarkable growth rates of the Russian advertising market, fuelled by general growth of the Russian economy and people's disposable incomes. At the same time, RBC is one of the fastest growing companies on this market, and its target audience is the most attractive for advertisers. Additionally, investors highly valued RBC as the leader of the industry in respect of information transparency and corporate governance", Kirukhin said.

RBC Information Systems (RTS, MICEX: RBCI) has been operating in the areas of mass media and information technologies (IT) since 1993. RBC's media division comprises a news agency, a business TV station, business and general online resources and the RBC business magazine. The company maintains a leading position on the Russian business information market, offering its audience the most comprehensive financial and economic data on Russia, the CIS and Western countries. RBC TV is the only Russian 24-hour business channel broadcasting in all major regions of the country and has the audience of more than 5 million viewers. RBC's flagship business portal, www.rbc.ru, attracts over 450,000 unique visitors a day, which is the largest business audience among the Russian mass media. The total daily audience of all RBC's online resources exceeds 1.35 million people. RBC also hosts annual business and marketing awards such as 'Company of the Year', 'Person of the Year', and 'THE Best Brand/EFFIE'. RBC's advertisers include over 2,300 Russian and foreign companies operating in various areas, ranging from insurances and finance to metallurgy and the oil and gas sector.

RBC also provides customized and universal IT solutions for various business areas, develops software for government agencies and offers offshore programming, system integration and IT consulting services. RBC was named among Russia's top ten software developers in 2005, according to the iOne:Information Technologies rating.

MDM Bank was founded in December 1993 and holds a General Banking License issued by the Central Bank of Russia (#2361 dated 13 February 2003). It is one of the most profitable private banks in Russia today and is one of a number of prominent banks in terms of capital and asset volume. Today, MDM Bank is a modern universal financial institution offering a full range of services to its clients. MDM has one of the highest credit ratings among privately-owned Russian banks: Standard & Poor's (B+, positive), Fitch Ratings (BB-) and Moody's (Ba2), and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor's (6.0). The magazine Global Finance named MDM Bank "Best Domestic Bank" in 2005 and has also awarded it the "Editor's Special Award for Transparency." Global Finance named MDM Bank the Best Bank if Russia in Four Categories for 2006: Best Foreign Bank, Best Domestic Bank, Best Domestic M&A Arranger, and Best Bank in Corporate Governance.

Press and investor contacts:
Egor Timofeev
Tel: +7 (495) 363-1111
Email: pr@rbc.ru
Web: www.rbcholding.com