Credit rating rationale. The issue represents subordinated debt of PJSC SCB "METALLINVESTBANK" (hereinafter, METALLINVESTBANK, or the Bank).

According to the bond issuance terms, the Bank may refuse to repay the principal or to accrue or pay interest or to pay any default penalties, in full or in part, should any of the following events occur: 1) the N1.1 ratio stays below 2% for six or more business days within a continuous period of 30 business days; 2) the Board of Directors of the Bank of Russia approves a plan for the latter’s participation in the implementation of bankruptcy prevention measures with respect to the Bank, or the Committee on Banking Supervision of the Bank of Russia approves a plan for the Deposit Insurance Agency’s participation in the implementation of bankruptcy prevention measures with respect to the Bank. The Bank of Russia has approved the inclusion of proceeds from the issue in the Tier 2 capital of METALLINVESTBANK.

If the Bank goes insolvent (bankrupt), all creditor claims and default penalties under this subordinated bond loan will be satisfied after any other creditor claims.

According to ACRA’s methodology, the credit rating of this issue type is three notches below the final credit rating of the Bank (A-(RU)).

The credit rating of METALLINVESTBANK is based on the Bank’s sustainable business profile, strong capital adequacy, adequate risk profile, and adequate funding and liquidity position.

Key issue properties

Borrower

PJSC SCB "METALLINVESTBANK"

Issuer’s credit rating

A-(RU), outlook Stable

Type of security

Uncertificated non-convertible interest-bearing bond subject to centralized title registration, С-01 series

Type of debt

Subordinated (Tier 2 capital)

Issue volume

USD 30 mln

ISIN

RU000A103JK8

Reg. No.

4-02-02440-B as of July 26, 2021

Placement start date

September 10, 2021

Maturity date

February 27, 2032

Call option date

Not earlier than March 5, 2027

Sources: ACRA, issuer’s data

Regulatory disclosure

The credit rating has been assigned to the series C-01 (RU000A103JK8) bond issue under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments on the National Scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.

A credit rating has been assigned to the series C-01 (RU000A103JK8) bond issued by PJSC SCB "METALLINVESTBANK" for the first time. The credit rating is expected to be revised within one year following the publication date of this press release.

The credit rating is assigned based on data provided by PJSC SCB "METALLINVESTBANK", information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and PJSC SCB "METALLINVESTBANK" participated in its assignment.

In assigning the credit rating, ACRA used only information, the quality and reliability of which was, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.

ACRA provided no additional services to PJSC SCB "METALLINVESTBANK". No conflicts of interest were discovered in the course of the credit rating assignment.

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