Vneshtorgbank President Andrey Kostin is interviewed at the news conference held in the Mariott Grand Hotel.
Photo: Vasily Shaposhnikov
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VTB Raised Subordinated Loan Through Eurobonds
Vneshtorgbank (VTB) has raised $750-million subordinated loan to become Russia’s first bank with the loan financed by placing 10-year eurobonds (call option) on cross-border markets, VTB said in a press release on February 7, 2005.
Lead managers are Barclays Capital, Deutsche Bank, HSBC and JP Morgan. The order book set forth $1.2 billion. As much as 116 investors, most of them from Europe, took part in the placement. For instance, U.K. investors bought out 49 percent of the issue, other European investors covered 27 percent, Asian investors accounted for 8 percent. Fixed half-year coupon was set at 6.315 percent on year, corresponding to the yield of 222 basic points above 5-year midswap.
Standard & Poor's and Fitch Ratings assigned BB- and BB+ credit ratings to the eurobonds respectively, Moody's Investors Service granted investment rating of Baa2 category, in line with the senior unsecured liabilities of the VTB.
The bonds were released by VTB Capital SA. The raised funds are transferred to the VTB subordinated loan agreement and will be spend to strengthen capital base of the bank.
Vneshtorgbank is one of the leading universal banks in Russia and the largest one in terms of authorized capital. State-run stake stands at 99.9 percent. Other holders are Gazexport, Sberbank, Energomashexport, Ingosstrah, Chamber of Commerce and Industry of the Russian Federation.
In Russia, the VTB has the broadest network of correspondents, while its foreign network is represented by four subsidiaries: in Zurich (Switzerland), in Limassol (Cyprus), in Vienna (Austria) and in Erevan (Armenia) as well as by the associated banks in Luxembourg and Frankfurt-on-Main (Germany), representative offices in Milan (Italy), Beijing (China), Kiev (Ukraine) and Minsk (Belarus).
www.kommersant.com
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