Press Clippings

Alfa-Bank launched an increased two-tranche diversified payments receipts (DPR) offering last Monday afternoon at the wide end of 180bp-190bp price talk. The €230m Series 2006-B notes were priced at 190bp over three-month Euribor and the US$260m Series 2006-C notes due 2011 were priced at 190bp over three-month US dollar Libor. The combined issuance of US$565m-equivalent was above the approximately US$500m target and is the largest unwrapped DPR deal from the CIS region. Joint bookrunners Dresdner Kleinwort and Merrill Lynch said there was a good amount of orders throughout the guidance range, and though a smaller transaction could have been achieved within this range Alfa elected to take the large size it was looking for at 190bp. Both tranches have a Baa3 provisional rating from Moody’s and were issued by Alfa Diversified Payment Rights Finance Company SA. In March 2006, Alfa Diversified PaymentRights Finance Company SA issued the first transaction in Russia (Series 2006-A) backed by diversified payment rights assets. The two new series are backed by the same pool of diversified payment rights already backing the outstanding Series 2006-A.