Leading Russian commercial bank Credit Bank of Moscow (CBOM) successfully issued its second $500mn Eurobond this year on March 22, the bank said in a statement.

The new senior 5.25-year $500mn bond was issued with a coupon of 7.121% and its fist issue in US dollars this year. The offer was oversubscribed by almost 1.5 times, the yield was lowered by an eighth from the initial price guidance.

It follows on from €500mn Eurobonds maturing in 2023 issued in February carrying an annual coupon rate of 5.55% that was also met with high demand, almost triple the supply of bonds on offer.

This is the bank's sixth Eurobond issue in the last two and a half years. It has currently six outstanding Eurobond issues: four issues with a total outstanding principal of $2.23bn, one €500mn issue and one RUB5bn issue.

A “wall of money” is headed for emerging markets (EMs) after the US Federal Reserve bank decided to pause its interest rate tightening making investors “risk on” and “yield hungry” again. The hunt is on for high-yielding but low risk bonds and Russia is a top destination on these parameters. The Russian state similarly got $3bn and €750mn Eurobond issues away last week – the largest issue in six years – on the back of the same growing appetite for Russian fixed income paper.

A series of meetings with investors in London, Amsterdam, Munich and New York garnered CBOM an order book with a wide geographical coverage: Continental Europe (38%), the UK and US (7%), Asia and Latin America (5%) and, Russian investors contributed 50%. All-in-all there were 80 orders from 19 countries worldwide, the bank said in a statement.

"In the course of our preceding euro transaction, we noted unsatisfied demand for our debt on the part of dollar investors. The new offering traditionally attracted investors from Continental Europe, and we note a growing interest among Southeast Asian investors. We consider the new offering a success. It helped us further diversify our investor base and lengthen our liabilities maturity profile," Vladimir Chubar, chairman of the management board, said.

Citi and Societe Generale acted as global coordinators, while Commerzbank, ING and Sova Capital acted as joint lead managers and bookrunners.

CBOM is one of the so called Garden Ring banks that ran into trouble in the autumn of 2017, but unlike its peers it managed to survive the turbulence on the market and since then has made a strong recovery on the bank of improving banking sector profitability.

The bank was included in the World’s Best Banks 2019 rating published by Forbes in collaboration with the analytics agency Statista headquartered in Germany in March. Among 20 Russian banks included in the list, Credit Bank of Moscow was ranked in first place, CBOM said on March 5 in a press release.