Cleary Gottlieb acted as English, Russian and U.S. counsel to Citigroup, Inc. as manager of a Regulation S offering by Promsvyaz Finance PLC of $200 million 8.5% Loan Participation Notes due 2010.
The notes, listed on the London Stock Exchange, were priced at par value and will finance a loan of equal amount from the issuer, which is an “orphan” SPV, to Joint-Stock Commercial Bank “Promsvyazbank” (Closed Joint-Stock Company). The Notes are rated “B” by Fitch, “B1” by Moody’s and “B” by Standard & Poor’s, with a stable outlook for all three ratings.
Promsvyazbank is Russia’s fifteenth largest bank in terms of assets based on Russian Accounting Standards.