Ilya Yurov, chairman of the TURST board of directors, has said that the bank issued warrants at the end of last year — debt instruments, with yield tied to the bank’s possible IPO within three years. Deal arrangers are MERRILL LYNCH and CREDIT SUISSE, six to seven funds bought the warrants. The warrants were issued against 2.0% of the capital of the banking group, i.e., investors may earn a profit from selling those shares in the course of IPO, if it takes place. The IPO decision has not been passed yet, but if the issue of capital shortage arises, that variant will have a priority, said Yurov. If the IPO does not take place, the warrants will turn into a debt instrument. TRUST does not disclose the amount of funds raised and the rate. Yurov said only that investors are guaranteed a yield similar to the yield of subordinated debt obligations. In July, the bank raised a $35m subordinated credit for 5.5 years at a 11% rate.
Source: VEDOMOSTI, November 23, 2007
