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VTB Launches Eurobonds at Large
VTB placed Eurobonds for the total worth of $2 billion under the new program of overseas borrowing, which amounts to the record $20 billion. The program of domestic loans will step up as well.
VTB has set to implementing its new program of overseas borrowing that amounts to $20 billion. The previous program of $10 billion was made out till this year-end and VTB attracted $7.5 billion from it already.
Yesterday, the bank placed Eurobonds for the total worth of $2 billion. The bonds were released in two tranches. The worth of five-year issue was $1.2 billion and the bonds were placed at UST (US Treasuries) + 262.5 basic points. The two-year issue, which worth reached $800 million, was placed at LIBOR + 170 basic points.
The bank is raising funds “for business development,” said VTB Deputy Board Chairman Vasily Titov. “We have no problems with liquidity. We are going to funnel the funds for capitalization of subsidiary bank in Ukraine and in some states of near abroad, and to advance retail and investment businesses,” Titov insisted.
In August, however, VTB President Andrei Kostin admitted that they intend to fund two big dials on the M&A market. One of them will be ALROSA’s acquisition of the blocking stake in Polus Zoloto, which worth is estimated at above $2 billion.
www.kommersant.com
All the Article in Russian as of Oct. 26, 2007
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