ACRA assigns AА-(RU) to series 002SUB-02R (RU000A102HC1) subordinated bond of Sberbank

Credit rating rationale. The bond is a debt instrument subordinated to preferred unsecured lenders of Sberbank. The issue documentation provides for complete or partial termination of Sberbank's obligations to repay the principal debt and pay interest, as well as in relation to financial sanctions for failure to fulfill obligations under this bond issue 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 participation in the implementation of bankruptcy prevention measures with respect to Sberbank, 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 Sberbank. The Bank of Russia has agreed to include proceeds from the bond issue in the sources of additional capital for Sberbank.

According to ACRA’s methodology, the credit rating of this issue type is set at three notches below the credit rating of Sberbank, which is AAA(RU).

Sberbank's credit rating is based on its very high systemic importance for the Russian economy and a high degree of state influence, as defined by ACRA’s methodology. Sberbank's standalone creditworthiness is very high as compared to other Russian credit institutions, which is supported by its exceptional market positions, strong capital position, and adequate risk and liquidity and funding profiles.

Key issue properties

Borrower

Sberbank

Borrower’s credit rating

AAА(RU), outlook Stable

Type of security

Uncertified non-convertible interest-bearing bond subject to centralized title registration, series 002SUB-02R

Type of debt

Subordinated

ISIN

RU000A102HC1

Reg. No.

4-02-01481-B-002P dated December 11, 2020

Issue volume

RUB 56 bln

Placement start date

January 22, 2021

Maturity date

March 11, 2031

Call option date

5 years after the date of inclusion in the sources of capital

Regulatory disclosure

The credit rating has been assigned to the series 002SUB-02R subordinated bond under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of 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 002SUB-02R (RU000A102HC1) subordinated bond issued by Sberbank for the first time. ACRA expects to review the credit rating within one year following the publication date of this press release.

The credit rating was assigned based on data provided Sberbank, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and Sberbank participated in its assignment.

No material discrepancies between the provided data and data officially disclosed by Sberbank in its financial statements have been discovered.

ACRA provided additional services to Sberbank. No conflicts of interest were discovered in the course of credit rating assignment.

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