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.
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.
Source: KOMMERSANT
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