Published: October 23, 2013
Russian bank raises equivalent of US$335mn.
VTB, Russia’s second-largest bank, has raised CHF300mn (US$335mn) through five-year bonds. The paper comes with a coupon of 2.9%. Commerzbank, Credit Suisse and VTB Capital managed the issuance.
Deputy chairman and chief financial officer Herbert Moos, in a filing to the London Stock Exchange, said:
"With this remarkable transaction we have achieved the lowest CHF coupon in VTB history and extended our Swiss market curve to 2018, which also represents the longest-dated benchmark for Russian financial institutions currently outstanding. In addition to our strategic objective of maintaining presence in the Swiss market, we have also managed to crystalise a very attractive relative value opportunity vis-à-vis the USD market."
VTB now has four outstanding Swiss-franc bonds worth a total of CHF1.2bn (US$1.3bn). Last week, in another display of currency diversification, the bank issued CZK600mn (US$32.1mn) in three-year debt. That deal was managed by Societe Generale.