TCS Group Holding PLC: Tinkoff Bank successfully closes issue of USD 300 m 9.25% debut perpetual bonds

DJ TCS Group Holding PLC: Tinkoff Bank successfully closes issue of USD 300 m 9.25% debut perpetual bonds

Dow Jones received a payment from EQS/DGAP to publish this press release.

TCS Group Holding PLC / Issue of Debt 
TCS Group Holding PLC: Tinkoff Bank successfully closes issue of USD 300 m 
9.25% debut perpetual bonds 
 
15-Jun-2017 / 16:05 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, 
LLC - a company of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN 
WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE 
RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE 
UNLAWFUL* 
 
*Tinkoff Bank successfully closes issue of USD 300 m 9.25% debut perpetual 
bonds* 
 
*Moscow, Russia - 15 June 2017. *TCS Group Holding PLC (*TCS LI*), Russia's 
leading provider of online retail financial services, including Tinkoff Bank 
and Tinkoff Insurance, today announces the successful closing and issuance 
by TCS Finance D.A.C. of its USD 300,000,000 9.25% perpetual callable loan 
participation notes (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. 
The Notes are admitted to trading on the Global Exchange Market of the Irish 
Stock Exchange on 15 June 2017. 
 
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 Basel III requirements and will be used to 
strengthen the Bank's capital base. 
 
*Sergey Pirogov, Vice President for Corporate Finance at Tinkoff Bank, 
said*: "We are happy with the outcome of this transaction. The final book 
was nearly three times oversubscribed with a strong mix of London-based 
institutional asset managers, Swiss-based private banking demand and Russian 
institutional demand, with add-on interest from Asia. This well-diversified 
high-quality investor demand allowed us to close the deal at the tight end 
of the pricing range. The success of this transaction shows that 
international debt capital markets are open to Tier 1 offerings from quality 
financial institutions out of Russia. As a result of the offering, Tinkoff 
Bank will have a more robust capital position to further develop its 
business and seize the growth opportunities through the expansion phase of 
the credit cycle." 
 
The book building followed a series of debt investor meetings and enjoyed 
strong investor appetite and a wide geography, represented by Russia 
(30.6%), Switzerland (30.55%), UK (13.94%), continental Europe (9.78%), Asia 
(7.52%), USA offshore (7.22%) and other countries (0.40%). 
 
The deal was launched on 8 June 2017, with the initial guidance for the 
annual coupon rate standing at 9.75%, and was nearly three times 
oversubscribed. The strong investor demand helped the Bank bring the coupon 
range down. After the book was closed, demand totalled nearly USD 900 m, and 
the coupon rate was set at 9.25%. 
 
J.P. Morgan Securities plc and UBS Limited ?acted as Joint Global 
Coordinators and Bookrunners and, in addition to BCP Securities, LLC, 
BrokerCreditService Ltd., Pareto Securities AB, "REGION Broker Company" LLC 
and Renaissance Securities (Cyprus) Limited, as Joint Lead Managers on the 
transaction. 
 
*For enquiries:* 
Tinkoff Bank                   Tinkoff Bank 
*Darya Ermolina*               *Larisa Chernysheva* 
Head of PR                     IR Department 
+ 7 495 648-10-00 (ext. 2009)  + 7 495 648-10-00 (ext. 2312) 
[e-mail]          [e-mail] [1] 
 
*About the Group* 
 
TCS Group Holding PLC is an innovative provider of online retail financial 
services operating in Russia through a high-tech branchless platform. The 
Group has also developed a "smart courier" network covering almost all 
cities and towns in Russia which allows next day delivery to many customers. 
 
Tinkoff Bank's product range includes daily banking (credit and debit cards, 
payments, money transfers), savings, investments, loyalty programmes, travel 
services, SME services, mortgage platform, and insurance. With its special 
focus on mobile business, the bank offers mobile applications both for its 
customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 
Card instant money transfers). 
 
Tinkoff is transitioning to become an online financial marketplace, 
Tinkoff.ru, which offers an entire range of both own brand and partner 
retail financial services via mobile and desktop. 
 
As at 1 May 2017, the bank was the second largest player in the Russian 
credit card market, with a market share of 11%. The 1Q17 IFRS net income of 
the parent company, TCS Group Holding PLC, which includes Tinkoff Bank and 
the insurance company Tinkoff Insurance, amounted to RUB 3.4 bn, ROE stood 
at 43%. 
 
Banki.ru, Russia's largest financial news portal, named Tinkoff Bank the 
Bank of the Year 2016. In October 2016 Tinkoff Bank was named the largest 
independent global direct bank by Frost & Sullivan. In 2015 and 2016, the 
Global Finance magazine named Tinkoff Bank as the Best Consumer Digital Bank 
in Russia. In 2016, the bank also won Global Finance's Best Integrated 
Consumer Bank Site award and was named the Best Digital Bank in the CEE by 
Euromoney. The bank's mobile application was recognised as the best in 
Russia by Markswebb Rank & Report for three consecutive years in 2014, 2015 
and 2016, and by Deloitte for four consecutive years from 2013 to 2016. 
 
*Forward-looking statements* 
 
Some of the information in this announcement may contain projections or 
other forward-looking statements regarding future events or the future 
financial performance of the Group and Tinkoff Bank. You can identify 
forward looking statements by terms such as "expect", "believe", 
"anticipate", "estimate", "intend", "will", "could," "may" or "might", the 
negative of such terms or other similar expressions. The Group and Tinkoff 
Bank wish to caution you that these statements are only predictions and that 
actual events or results may differ materially. The Group and Tinkoff Bank 
do not intend to update these statements to reflect events and circumstances 
occurring after the date hereof or to reflect the occurrence of 
unanticipated events. Many factors could cause the actual results to differ 
materially from those contained in projections or forward-looking statements 
of the Group and Tinkoff Bank, including, among others, general economic 
conditions, the competitive environment, risks associated with operating in 
Russia, rapid technological and market change in the industries the Group 
operates in, as well as many other risks specifically related to the Group, 
Tinkoff Bank and their respective operations. 
 
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BE PASSED ON TO ANY RETAIL CLIENT. 

(MORE TO FOLLOW) Dow Jones Newswires

June 15, 2017 10:05 ET (14:05 GMT)

THE SECURITIES REFERRED TO IN THIS ANNOUNCEMENT ARE NOT INTENDED TO BE SOLD 
AND SHOULD NOT BE SOLD TO RETAIL CLIENTS IN THE EUROPEAN ECONOMIC AREA, AS 
DEFINED IN THE RULES SET OUT IN THE PRODUCT INTERVENTION (CONTINGENT 
CONVERTIBLE INSTRUMENTS AND MUTUAL SOCIETY SHARES) INSTRUMENT 2015, AS 
AMENDED OR REPLACED FROM TIME TO TIME. 
THIS ANNOUNCEMENT OR INFORMATION CONTAINED THEREIN IS NOT AN OFFER, OR AN 
INVITATION TO MAKE OFFERS, TO SELL, EXCHANGE OR OTHERWISE TRANSFER 
SECURITIES IN THE RUSSIAN FEDERATION TO OR FOR THE BENEFIT OF ANY RUSSIAN 
PERSON OR ENTITY AND DOES NOT CONSTITUTE AN ADVERTISEMENT OR OFFERING OF 
SECURITIES IN THE RUSSIAN FEDERATION WITHIN THE MEANING OF APPLICABLE 
RUSSIAN SECURITIES LAWS. INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS NOT 
INTENDED FOR ANY PERSONS IN THE RUSSIAN FEDERATION WHO ARE NOT "QUALIFIED 
INVESTORS" WITHIN THE MEANING OF ARTICLE 51.2 OF THE FEDERAL LAW NO. 39-FZ 
"ON THE SECURITIES MARKET" DATED 22 APRIL 1996, AS AMENDED (THE "RUSSIAN 
QIS") AND MUST NOT BE DISTRIBUTED OR CIRCULATED INTO RUSSIA OR MADE 
AVAILABLE IN RUSSIA TO ANY PERSONS WHO ARE NOT RUSSIAN QIS, UNLESS AND TO 
THE EXTENT THEY ARE OTHERWISE PERMITTED TO ACCESS SUCH INFORMATION UNDER 
RUSSIAN LAW. THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED IN RUSSIA 
AND ARE NOT INTENDED FOR "PLACEMENT" OR "CIRCULATION" IN RUSSIA (EACH AS 
DEFINED IN RUSSIAN SECURITIES LAWS) UNLESS AND TO THE EXTENT OTHERWISE 
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("QUALIFIED INVESTORS"). THIS ANNOUNCEMENT IS AN ADVERTISEMENT FOR THE 
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PROSPECTUS PREPARED PURSUANT TO THE PROSPECTUS DIRECTIVE WILL BE PUBLISHED, 
WHICH, WHEN PUBLISHED, CAN BE OBTAINED FROM THE TRUSTEE. 
 
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Archive at www.dgap.de/ukreg 
Language:      English 
Company:       TCS Group Holding PLC 
               2nd Floor, Sotiri Tofini 4, Agios Athanasios 
               4102 Limassol 
               Cyprus 
Phone:         [phone] 
Fax:           [phone] 
E-mail:        [e-mail] 
Internet:      https://www.tinkoff.ru 
ISIN:          US87238U2033 
Listed:        Foreign Exchange(s) London, Moscow 
Category Code: IOD 
TIDM:          TCS 
LEI Code:      2534000KL0PLD6KG7T76 
Sequence No.:  4306 
 
End of Announcement EquityStory.RS, LLC News Service 
 
583379 15-Jun-2017 
 
 
1: mailto:[e-mail] 
 

(END) Dow Jones Newswires

June 15, 2017 10:05 ET (14:05 GMT)