Moscow-based development bank International Investment Bank (IIB) has priced its denominated private placement transaction with three-year floating rate notes in koruna of CZK501mn, the bank said in a press release on April 18.

The transaction is part of IIB’s strategy to diversify its funding sources, and will be followed by the issuer listing on both the Prague and Vienna bourses. The move comes after rating agency Standard & Poor’s (S&P) upgraded IIB’s long-term rating to BBB+ stable amid positive results for 2017.

IIB offered a price guidance of 3m Pribor +50/60 bps for a three-year private placement.

“Based on the solid demand, with a book exceeding CZK850mn (excluding the sole lead’s interest), IIB issued an amount of CZK501mn at 3m Pribor+55bps setting up a new price reference for its funding in the Czech market. The book was well diversified for a private placement, with nine investors from four countries (Austria, Czech Republic, Germany and Slovakia),” the bank said.

IIB confirmed its status as a well-established actor in the region, deputy chairman Jozef Kollar said. “Our instruments received a warm welcome from the investors, even when it’s a debut. Moreover, if you consider the fact that such results are achieved in a shaky external environment, it becomes even more valuable,” he added.

The inaugural koruna issue is in line with the IIB’s strategic goal to help local capital markets develop. “[It] would contribute to a further deepening of the Czech domestic financial market with the listing on the regulated Prague Stock Exchange,” Kollar said.

IIB was founded in 1970. Its current shareholders include Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam. The bank has undergone major modernisation since late 2012.