Lovells advises Bank of Moscow on first issue under US$5 billion loan participation notes programme

Lovells has advised the joint stock commercial bank Bank of Moscow (“Bank of Moscow”), one of Russia’s five largest banks, on a US$750 million note issue by Irish special purpose vehicle BOM Capital PLC (“BOM Capital”). The issue, which closed on 11 March, is the first issue under Bank of Moscow's 144A compliant US$5 billion Loan Participation Notes programme.  

The net proceeds of the offering will be used by BOM Capital to finance a loan to the Bank of Moscow, which the Bank of Moscow will use for general corporate purposes.   

The Lovells cross-border team was co-led by Moscow-based capital markets partner Michael Pugh and London-based US securities partner Katherine Mulhern.  The pair were assisted by of counsel Markus Bauman, senior associate Jonathan Malim (both London) and associates Olga Poyda (Moscow) and Tim Barnett (London).  

Michael Pugh said:              

"This is an excellent deal to relaunch the Russian capital markets in 2010 because of the size of the issue and the low coupon.  The next wave will come later in 2010 when the full year financial statements for the year ended 2009 are ready. Let’s hope they are of a similar size and similarly competitive coupon." 

The lead managers are Credit Suisse Securities (Europe) Limited, Goldman Sachs International and JP Morgan Securities Ltd.  

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