The issue, by Luxemburg-based SB Capital S.A., will be of loan participation notes to be used solely for financing a senior unsecured loan to state-owned savings bank Sberbank, rated issuer default BBB with a stable outlook and short-term F3. The issuer will assign its rights under the loan agreements to trustees, following the issuance of the corresponding series of notes.
The agency said it would assign the final rating after receipt of final documentation, adding that
Sberbank's obligations under senior loan agreements would rank at least equal with all other unsecured and unsubordinated obligations of the bank, and that notes used to finance subordinated loans would probably be rated lower than notes used to finance senior loans.
Fitch said note-holders would benefit from a put option should the Central Bank lose its majority stake in Sberbank, defined as 50% plus one share, or its right to appoint or remove a majority of the bank's supervisory council.
Sberbank is the largest bank in Central and Eastern Europe, with $62 bln in net loans, $87 bln in assets, and $8 bln in equity, as of the end of 2005. It is 60.6 %-owned by the Central Bank.
