Alfa Bank Adds on USD 185 mln to its December Eurobond Issue

Alfa Bank placed another USD 185 mln in Eurobonds (S: BB-; M: B1) at a 2% premium to par value; these bonds are fungible with its December ‘06 Eurobond placement, according to Bloomberg. The bonds have a maturity of three-years and a coupon of 9.75%. Oleksandr Klymchuk: As last year’s issue was reported to be placed at par value, the yield of the current placement is 83 bps lower. This is quite a remarkable result given the 17 bps increase in 3-year Treasuries and only 18 bps decrease in Ukrainian Sovereigns maturing in 2011. This add-on increases the total outstanding amount of the Ukrainian corporate Eurobond sector to USD 5.7 bln, with issues made YTD accounting for 22% of that. We expect the corporate Eurobond spur to continue, bringing the total outstanding amount above USD 7 bln by the end of 2007.