TCS Group Holding PLC (TCS) TCS Finance D.A.C. successfully closes U.S.USD600 million loan participation notes issuance 21-Sep-2021 / 21:47 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES (OTHER THAN TO QIBS), CANADA, AUSTRALIA, RUSSIAN FEDERATION OR, SUBJECT TO CERTAIN EXCEPTIONS, JAPAN
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN
TCS Finance D.A.C. successfully closes U.S.USD600 million loan participation notes issuance
Limassol, Cyprus - 21 September 2021 - Tinkoff Bank announces that TCS Finance D.A.C. yesterday successfully closed and issued U.S.USD600 million aggregate principal amount of perpetual callable loan participation notes with initial coupon rate of 6% per annum (the "Notes"). The Notes have been issued by, but with limited recourse to, TCS Finance D.A.C. for the sole purpose of financing a subordinated loan to Tinkoff Bank. The Notes have been rated 'B-' by Fitch and 'B3' by Moody's. The Notes were admitted to trading on the Global Exchange Market of the Irish Stock Exchange yesterday.
TCS Finance D.A.C. has on-lent the proceeds from the issue of the Notes to Tinkoff Bank. Tinkoff Bank intends to use the proceeds for general corporate purposes. The issue meets the criteria of Regulation No. 646-P of the Central Bank of Russia (consistent with Basel III requirements) and will be used to strengthen the Bank's capital base.
Sergey Pirogov, Head of Corporate Finance at Tinkoff Bank, said: "We are happy with the outcome of this transaction. A solid order book with nearly 7? oversubscription coupled with a strong mix of investor interest spanning the world is a clear evidence of the strong risk appetite of global investors for unique quality growth stories like Tinkoff. Given its attractive pricing, this AT1 offering will help Tinkoff maintain an optimal capital mix while boosting our capital to fund mid-term growth opportunities ahead of us".
The book building followed a series of debt investor meetings and enjoyed strong investor appetite and a wide geographic distribution, represented by UK (26%), continental Europe (23%), Russia (18%), the Americas (14%), Switzerland (12%), Asia & MENA (7%).
The deal was launched on 8 September 2021, with the initial guidance for the annual coupon rate standing at 6.75%, and was nearly 7 times oversubscribed. The strong investor demand helped the Bank to substantially reduce the indicative coupon guidance over the course of book building. When the book was closed, the demand exceeded U.S.USD 4 billion at its peak, and the final coupon rate was set at 6.0%.
Citigroup Capital Markets and J.P. Morgan Securities acted as Joint Global Coordinators and Bookrunners; AO «ALFA-BANK» (acting jointly with Alfa Capital Markets Ltd), Alfa Capital Markets Ltd (acting jointly with AO «ALFA-BANK»), GPB-Financial Services Ltd, Renaissance Securities (Cyprus) Limited and Société Générale acted as Joint Lead Managers and Bookrunners; and BCP Securities acted as Co-Manager on the transaction.
PR Department Larisa Chernysheva
+ 7 495 648-10-00 (ext. 2202)
+ 7 495 648-10-00 (ext. 2312)
+ 7 495 648-10-00 (ext. 35738)
About Tinkoff Group
TCS Group Holding PLC is an innovative provider of online retail and SME financial services. It includes Tinkoff Bank, its mobile virtual network operator Tinkoff Mobile, Tinkoff Insurance, its asset management company Tinkoff Capital, Tinkoff Software DC, a network of development hubs in major Russian cities, and Tinkoff Education. The Group is currently developing Tinkoff ecosystem, which offers financial and lifestyle services.
The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange since October 2013.
The Group's key business is Tinkoff Bank, a fully online bank that serves over 16 mn customers and forms the core of the Tinkoff ecosystem. Tinkoff is the 3rd largest retail bank in Russia in terms of active client-base.
Tinkoff Bank is the second largest player in the Russian credit card market, with a share of 14.3%. The 2Q'21 IFRS net profit of TCS Group Holding PLC amounted to RUB 16.1 bn. The ROE was 46.1%.
With no branches, the Group serves all its customers remotely via online channels and a cloud-based call centre. The centre is staffed by over 10,000 employees, making it one of the largest in Europe. To ensure smooth delivery of the Group's products, the Group has a nationwide network of over 10,000 representatives.
Global Finance named Tinkoff Bank the world's Best Consumer Digital Bank in 2020 and 2018, and the Best Consumer Digital Bank in Russia in 2020, 2019, 2018, 2016 and 2015. Tinkoff was also named the Best European Retail Bank of the Year by Retail Banker International in 2020. In 2021, the Banker recognised Tinkoff Bank as Russia's Best-Performing Bank. The bank's mobile app has been consistently praised by local and global independent experts as the best of its kind (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).
EEA MiFID II / UK MiFIR professionals/ECPs-only /No EEA or UK PRIIPS KID
Manufacturer target market (EEA MIFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK. No sales to retail clients in EEA, as defined under MiFID II, and in the United Kingdom. No sales to retail clients (as defined in COBS 3.4) in the UK.
This announcement does not constitute, or form part of, an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. Such securities have not been registered, and will not be registered, under the U.S. Securities Act of 1933 (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States, and cannot be offered, sold, pledged or otherwise transferred, directly or indirectly, within or into the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Neither this announcement nor any copy hereof may be sent, taken or distributed in the United States or to any U.S. Person (as such term is defined in Regulation S under the Securities Act) except to persons that are qualified institutional buyers (as defined in Rule 144A under the Securities Act) ("QIBs"). There will be no public offering of the securities referred to herein in the United States.
The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. The offering and the distribution of this communication and other information referred to herein may be restricted by law and persons into whose possession this communication or such other information comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This announcement is directed only at persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Order or (iv) to whom this announcement may otherwise be directed without contravention of Section 21 of the Financial Services and Markets Act 2000 (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
In member states of the European Economic Area, this announcement is directed only at persons who are "qualified investors" within the meaning of Prospectus Regulation (Regulation (EU) 2017/1129) (the "Prospectus Regulation ") ("Qualified Investors").
(MORE TO FOLLOW) Dow Jones Newswires
September 21, 2021 14:47 ET (18:47 GMT)