Tuesday, 30 november 2010

BALC to issue securitized Eurobonds

BALC successfully issued USD 147,6 million securitized Eurobonds at a coupon of 7,214% with a 3-year tenancy.

The placement was organized by Bank of Moscow.

Eurobonds were issued in order to refinance a loan obtained by BALC from the Bank of Moscow for the implementation of big-ticket power energy lease projects.

The underlying asset of the Eurobonds is the lease payments, which may be redirected to the creditors in order to secure the leasing company’s liabilities, which in turn are based on a combination of the Russian and the English law.

The transaction became the second of its kind in BALC’s history. Thus in 2007 the company issued RUB 8.3 billion securitized Eurobonds at a coupon of 8.875% with a 5-year tenancy and raised financing for the implementation of a lease deal for “Moscow Unified Electricity Distribution Network” (MOESK). That was the first Eurobond for an infrastructure power energy project and the first Eurobond in Russian rubles organized by a Russian bank (Bank of Moscow) for a leasing company. That issuance has won “Euromoney’s Best Deal of the Year 2007” award.