On NovemBer 8, the IPO of LLC«PROTEK FINANCE», 100 % subsidiary of Protek Group, was placed on Russia''s MICEX. According to the results of the competitive tendering, the first coupon rate was fixed at 9,90 % p. a.. Thus, bond yield for the three-year offer was 9,10% p. a..
During the competitive tendering for the first coupon rate, a total of96 investors applied for an aggregate sum of RUR 7,9 bln. Investorsquoted rates in a range of 9,00% - 9,40% p. a., and the issue was placedin full that day.
The IPO was organized by Raiffeisenbank and Renaissance Capital.Raiffeisenbank served as agent.
Morgan Stanley Bank, Deutsche Bank, Citibank, International Moscow Bank,Commerzbank (Eurasia), Soyuz Bank, Absolut Bank, VTB 24, InvestmentGroup Kapital, Rosbank and Troyka Dialog served as underwriters.Evrofinance-Mosnarbank and ABN AMRO Bank served as co-underwriters.
The bonds have a face value of RUR 5 billion and a maturity period of 5years and carry semiannual coupons. The first coupon was set at 8.90 %p. a., likewise second through third coupons. The rates of subsequentcoupons are to be set by the issuer. In accordance with the issuer''sdecision, all bondholders have an opportunity of early buy-out of bondsat the nominal price in 3 years.
The performance of payment obligations is secured by the guarantee ofLLC“PROTEK”, the holding company of the Protek group and CJSC CV “PROTEK”, the major operating company of the Group according to the offering memorandum.
The funds raised after the placement of bonds will be directed to thedevelopment of RIGLA pharmacy network, and to the enlargement of volumeof medical products'' bulk purchase.
PROTEK Group is the biggest vertically integrated holding at the Russianpharmaceutical market. PROTEK has a diversified business structure andis present in all segments of the branch: production of medicalproducts, distribution of health and beauty pharmaceuticals, retail andprovision of service. The key positions in the group structure areoccupied by:«PROTEK Implementation Center», the biggest wholesale distributor of medical products. (It works in 86 regions of Russia and is the biggest supplier of medical products within the frames of the state federal program of additional pharmacological support of the country''spopulation, an exclusive distributor of medical products of the world''s biggest pharmaceutical companies: Pfeizer, Gedeon Richter, Aventis, Novartis Pharma, AJC Pharma etc.); LLC «Rigla», the second largest pharmacy chain in Russia in terms of sales quantity and volume;CJSC «FarmFirma Sotex», a producer of medical products in accordance with GMP standards. PROTEK''s consolidated revenue exceeded USD 1 bln as of the first 6 months of 2006, and its net income was USD 42 mln.
Raiffeisenbank is one of the leaders of the Russian corporate bondmarket. In the period from 2001 to 2006, the Bank has organized orco-organized 86 corporate bond issues with a total nominal value overRUR 255 billion.
CJSC«Raiffeisenbank Austria» is the 9th largest bank in Russia in terms of assets as of the 3rd quarter of 2006 (EAC «Interfax»). The Bank has 19 outlets in Moscow, 5 in St. Petersburg, and regional branches in Ekaterinburg, Samara, Novosibirsk, Chelyabinsk, Nizhny Novgorod,Krasnodar, Krasnoyarsk and Perm. Raiffeisenbank is ranked 9th in terms of corporate credit portfolio as of the 3rd quarter of 2006 (EAC «Interfax»).
CJSC«Raiffeisenbank Austria» is an affiliate of Raiffeisen International Bank-Holding AG (Raiffeisen International), a holding company, controlling subsidiary banks and leasing companies in 16 markets in Central and Eastern Europe. The Bank serves 11 million clients at morethan 2700 business outlets. Raiffeisen International is a fully consolidated subsidiary company of Raiffeisen Zentralbank Austria AG (RZB), which owns 70 % of the common stock. The remaining 30 % is free float; the shares are traded on the Vienna Stock Exchange. RZB is the central institution of the Raiffeisen Banking Group, the principal corporate and investment bank,and the leading bank in Austria, as well as in Central and Eastern Europe.