Shares of Credit Bank of Moscow Begin Trading on Moscow Exchange
Trading in shares of Credit Bank of Moscow began today on Moscow Exchange under the ticker CBOM. The initial public offering process ran from 22 June to 30 June.
A total of 3,639,683,500 shares were offered through the IPO at 3.62 rubles apiece. 18.8% of the company's shares were placed via the offering, raising a total of RUB 13,175,654,270.
Vladimir Chubar, Chairman of the Management Board, said:
"Public trading in our shares marks a completely new stage in the life of the company. We are delighted that Credit Bank of Moscow"s investment story has proved attractive to a wide range of investors and that we were able to form a quality and diversified order book. We"re pleased with the outcome of the IPO and welcome our new shareholders."
Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, said:
"Credit Bank of Moscow"s IPO is the fifth equity offering carried out on Moscow Exchange this year. We know the bank well as an active participant on the Exchange"s FX Market: it is a strong bank with a modern and efficient business model. The successful placement of shares among a broad pool of investors is one additional confirmation that the market remains open for high-quality issuers. We wish Credit Bank of Moscow well in its life as a public company."
Effective 22 June 2015 Moscow Exchange raised Credit Bank of Moscow"s shares to the First Level quotation list, the premium listing segment.
VTB Capital acted as sole global coordinator and bookrunner on the offering with GK Region and Aton acting as co-lead managers.
CREDIT BANK OF MOSCOW (CBM) is one of the leading privately owned universal banks in Russia, and focuses on providing banking products and services to corporate customers and individuals in Moscow and the Moscow Region. CBM"s corporate banking business is primarily focused on retail and wholesale trading corporate customers, enabling CBM to capitalize on the Russian consumer market. CBM"s retail business is focused on consumer loans to high quality retail customers, with a particular emphasis on cross-sales of retail products to the employees and clients of its corporate customers.
CBM offers a comprehensive range of banking services, including lending, deposit-taking, cash handling, international settlements, trade finance, guarantees and other products. By leveraging its leading cash handling service and payment terminal network, the Bank is able to monitor the cash flows and payment histories of its customers as well as, in the case of many of its retail customers, their employers, which ensures strong portfolio performance and asset quality.
According to INTERFAX-100, as at 1 April 2015, CBM is one of the top five privately owned Russian banks, measured by total assets. According to IFRS, as at 31 March 2015, CBM had assets of RUB 581.7 bln and equity of RUB 61.2 bln. Its Tier 1 capital ratio according to Basel III was 10.4% and its total capital ratio 15.8%. Nonperforming loans (NPL 90+) stood at 2.4%. The Bank"s net profit for 1Q2015 was RUB 0.3 bln, representing a return on assets (ROAA) of 0.2%, with a return on equity (ROAE) of 1.9%. CBM has a successful record in international capital markets, with an initial issue of Eurobonds in 2006. The Bank is currently rated BB- with a Negative outlook by S&P; B1 with a Stable outlook by Moody's; and BB with a Negative outlook by Fitch.
CBM was founded in 1992 and acquired by Mr. Roman Avdeev in 1994. Mr. Avdeev beneficially owns 70.0% of CBM"s shares. The European Bank for Reconstruction and Development, International Finance Corporation (IFC) and RBOF Holding Company I, Ltd. (100% owned by the IFC Russian Bank Capitalization Fund belonging to the same group of companies as the IFC) hold 11.2% of CBM"s shares and are represented on CBM"s Supervisory Board alongside with four independent non-executive directors. The free float now comprises 18.8% of the shares in issue.
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Moscow Exchange ranks among the world's top 25 exchanges by total volume of equities traded, and also among the 10 largest exchange platforms by bonds and derivatives trading. As of 1 July 2015 securities of 732 issuers are admitted to trading on the securities market of Moscow Exchange, including securities of the largest Russian companies by market capitalization.
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