TCS Bank places US$125m 5.5-year Lower Tier 2 Eurobond
Egidaco Investments Plc, the 100% parent company of TCS Bank, is pleased to announce that on November 29, 2012 Tinkoff Credit Systems Bank priced its US$125mm 14.00% 5.5-year debut subordinated Eurobond.
The deal announcement followed two days of investor update meetings in the UK and Switzerland. On the back of a quality US$160mm orderbook with 60 investors, TCS upsized the transaction, pricing a US$125mm transaction at 14.00%. The transaction is the first subordinated placement for Tinkoff Credit Systems Bank and the longest ever offering placed by TCS. The deal follows TCS September 2012 US$250mm 10.75% 3-year Reg S only offering (the largest ever placed by TCS) and will enable TCS to further strengthen its capital position and implement its growth strategy.
Goldman Sachs and JP Morgan acted as joint lead managers for the Eurobond.
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Tinkoff Credit Systems (TCS Bank) is a leading credit card company and a first online bank in Russia. The bank was founded by the renowned Russian entrepreneur, Oleg Tinkov. He was later joined by two financial investors, Goldman Sachs (in 2007) and Vostok Nafta (in 2008). In 2012 Baring Vostok Private Equity Fund IV and Horizon Capital’s Emerging Europe Growth Fund II also became shareholders. Based in Moscow, TCS Bank issues credit cards to customers in all of Russia's regions, including smaller, underserved cities. TCS operates a branchless model, attracting customers online and through direct mail, and servicing customers through its cutting edge Internet bank and call centre. TCS’s credit card market share is almost 7% in 2012 with over 2,5 million credit cards issued and over 1,5 billion dollars in assets.