Tinkoff Bank Securities Unwanted
The first placement of Tinkoff Credit Systems bank securities, in spite of the 18-percent interest coupon on the three-year obligations, was unsuccessful. Investors bought only 1 billion rubles worth of the bond, or 67 percent of the offering, in the course of ten days, even though, experts say, the bank itself and companies acting in its interests took an active part in the buying. Average interest rates on the market today are 8-14 percent.
Tinkoff Credit Systems' sole activity is the issuance and servicing of credit cards. It was founded in May of this year. Oleg Tinkov is the majority shareholder in the company. The bank has 332 million rubles in capital and 504 million rubles in assets. It plans to increase its credit portfolio to 2.6 billion rubles by the end of the year.
This is the first example of the incomplete placement of a corporate bond since Centertelecom was only able to place 80 percent of its issue, announced at 7 billion rubles, in August of 2004. Tinkoff intended to spend the funds it attracted to develop its credit card business. That was an unusual move, since usually banks at their initial stages depend on the funds of their shareholders for development.
Vadim Martynenko, head of the sales department for instruments with fixed income at Deutsche Bank, the organizer of the placement, was satisfied with it, however. “I consider the placement very successful,” he said, “since it is the first one by an issuer that is in the initial stages of development and does not have a confirmed credit history or significant financial indicators.”
www.kommersant.com
All the Article in Russian as of Nov. 08, 2007
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