Concorde Capital completes UAH 40 million, series B bond placement for Idea Bank16 August 2013
Investment company Concorde Capital completed a UAH 40 million, series B bond placement for Idea Bank with a maturity date of July 2015. The bonds were issued with a three-month put option at a yield to put/maturity of 17 percent.
Among the buyers were local investment funds and commercial banks, as well companies in the economy’s real sector. Idea Bank plans to use the attracted assets to increase its credit portfolio for individual and legal entities.
“Although in the last month, the interest rates on bonds and money resources grew a bit, Idea Bank’s bonds were positively received by investors. Therefore, we were able to successfully conduct the market placement among a large circle of investors,” said Andriy Gerus, the director of trading and investment activity of Concorde Capital. “At the year’s start, we significantly increased our credit portfolio and client base. Taking into account the business model of our bank, which is successfully used in all countries where the parent company Getin Holding (Poland) is present, the bond placement is for us an important element of diversifying our resource base, which we plan to use to strengthen our positions in car loans and personal loans.
Moreover, we view bonds not only as funding, but also as our strategy in strengthening relations with investors and fulfilling deals on the capital markets. In the near future, we will consider new opportunities to attract capital on public markets and we will arrange for long-term relations with already existing and potential investors,” said Wladimir Kuzio, a member of the Idea Bank board of directors and director of the treasury department.