Interbank Trading System issued the decision to admit the subordinated bonds of the Capital Bank to circulation in the ITS system on 23 May 2007.
Trading in Capital Bank’s bonds was commenced on 30 May. The total size of the float made up 2,500 bonds worth the total of 2.5 billion soums with a maturity period of 3,640 days. The offer rate at initial placement constituted 1 billion soums. The coupon rate is floating – refinance rate quoted by the Central Bank of Uzbekistan + 2%.
The placement price per bon is determined by the demand and supply in the securities market.
Capital Bank decided to issue corporate bonds, considering the advantages of this form of borrowing, and the fact that this would fall in line with the its strategy of diversifying the sources of long-term borrowing.
One of the priorities set by the bank is to minimize the risks by maximizing diversification, integration of innovative products in the banking services sphere and expansion of the network of mini-banks across the country, UzReport.com reported.