Hogan Lovells, Latham advise on Russian bank's capital markets return

The firms also advised on a $40m (£25.5m) issue, the first under the under the ECP scheme, with the deal representing a return to the capital markets by B&N following a hiatus since its credit-linked note (CLN) programme launched in 2005.

The latest deal saw Hogan Lovells advise B&N, an established client, with Moscow capital markets partner Michael Pugh leading alongside associates Arthur Sanikidze and Andrew Robinson, both of whom are also based in the Russian city.

Latham Moscow finance and capital markets partner Mikhail Turetsky led for the arrangers, which consisted of BCP Securities, the Royal Bank of Scotland (RBS) and VTB Capital.

B&N’s first ECP issue on 1 August comes amid a burst of activity in the Russian market, with the country’s Alfa Bank, Gazprombank and Russian Standard Bank all either issuing or considering launching ECPs in the past year.

Background to this deal:

Hogan Lovells has advised B&N since 2005, when Pugh, then an associate, won a pitch to guide the bank through the establishment of a CLN programme and a number of associated issues. BCP was the arranger on that deal, although both it and B&N together instructed Hogan Lovells. White & Case partner Martin Hughes, who has since retired, advised trustee Bank of New York (now Bank of New York Mellon) on the 2005 deal.

Pugh continued to advised B&N on related issues until 2008, when market turbulence cut the bank’s deal pipeline. The latest ECP establishment is a return to the market, with BCP, RBS and VTB all attempting to cash in on the apparent upturn, with previous market leader UBS not featuring.