Promissory notes
Bank issues to legal entities (residents and non-residents) the following types of notes:
Non-interest bearing (discount) notes – VTB’s promissory notes that do not contain interest clause. Not-interest bearing notes are issued by the bank at or below their par value. The difference between the note’s par value and the amount paid by the Customer to purchase them is called a discount.
The selling price of discount notes is calculated on the basis of actual calendar days in a year (365 or 366 days, respectively) and the interest rate applicable by the Bank at the moment of the notes issuance, which is reflective of the currency of the notes, their terms and amounts.
VTB issues non-interest-bearing notes with the following terms of payment:
- upon demand but not earlier than;
- on a certain day;
- at a certain time as from the issuance.
Interest-bearing notes – are notes issued by the Bank at par value and having an interest clause. Interest clause is a statement in the text of a note on the interest rate applied.
Interest-bearing notes are issued with the following terms of payment:
- on a certain day.
Safekeeping of Notes
The Bank offers note holders to have their notes safe-kept with the Bank.
Client can have his notes kept by the Bank in order to protect them from any possible loss, theft or damage.
VTB's superior reliability among Russian commercial banks essentially eliminates customer risks and ensures maximum safety of funds invested in notes.
Bank pays (incl. payment before the appointed time) notes that are safe-kept.Renewal of notes
Upon note holder’s request, instead of cash payment under notes presented for payment either upon maturity specified in the notes or earlier, the Bank may issue new notes.
Within the maturity period of notes, the note holder may exchange non-interest bearing notes of one par value to notes of a different par value with the full par value equal to the cost of notes subject for renewal, but with the same maturity periods.Confirmation of the notes issued
Upon Customer request, the Bank may confirm its notes issued.
Key benefits and advantages for a client:
- VTB's superior reliability among Russian commercial banks, which practically eliminates customer risks and ensures maximum safety of funds invested in notes;
- additional income gained (when notes are used as a term financial instrument);
- possible use of notes for settlement with counteragents;
- country-wide branch network of the Bank enables its customers to get and pay notes at any additional office or branch;
- no need to notify tax authorities of notes purchase;
- possibility to get a bank guarantee against the Bank’s notes as collateral;
- possibility to get a loan against the notes as collateral;
