ING Bank N.V. Placed Russian Bank of Development Credit Linked Notes Issued under the Guarantee of the Russian Federation
31 March 2005 “ING BANK (EURASIA) ZAO” acted as a sole lead manager of a CLN issue linked to the credit risk of the Russian Bank of Development (RosBD) under a guarantee of the Russian Government.
The amount of underlying loan is 2,5 bln. rubles (around USD 90 m) and the tenor is 21 months (due 29 December 2006).The CLNs are issued with a semi-annual coupon set at the rate of 7.60% per annum.
The Ministry of Finance of the Russian Federation acting as an agent of the Russian Government provided ING Bank N.V. with a guarantee in the amount of 3 bln. rubles covering the principal of the loan and the interest payments..
“It is the first fixed income issue linked to sovereign risk, denominated in rubles (but payable in USD) and traded on international markets. These circumstances predetermined a high demand for this instrument”, noted Harry Harbers, Managing Director of ING Bank N.V.
The Credit Linked Notes were issued by ING Bank N.V. in relation to its USD 12 bln Limited Recourse Obligation Programme. The Programme envisages settlement of the CLN’s via Euroclear and Clearstream.
RosBD plans to use the funds raised for financing its small business development programme.
Press enquiries: ING BANK (EURASIA) ZAO, Maria Poshisholina, tel: +7 095 755 51 70
