ING and UBS instruct A&O on Moscow eurobond

Allen & Overy (A&O) has advised ING Barings and UBS Warburg on a g300m (£184.4m) eurobond for the City of Moscow.

The transaction is the first eurobond for a Russian entity since the 1998 Russian financial crisis.
Historically, UBS has a stronger relationship with A&O but on this the firm is being instructed jointly.
The deal’s lead partner Daniel Shurman inherited it from Nigel Johnson.
To avoid withholding tax, the transaction was structured as a loan to the City of Moscow from the German BHF-Bank using the German-Russian Double Taxation Treaty.
The bank funded the loan through a g300m bond issue, with notes rated B, B2 and B by Standard & Poor’s, Moody’s and Fitch respectively.
Shurman said the structure meant that the German bank was exempt from risk.
A&O also advised Chase Manhattan Bank as trustee and Linklaters & Alliance advised the City of Moscow.