VTB Bank issues and buys discount or interest-bearing promissory notes. Simple notes are issued to individuals as well as companies, both residents of Russia and non-residents.
VTB Bank issues interest bearing notes at their par value with a stipulation of interest – a statement on the note stipulating its interest rate.
Discount notes are issued at a discount to par or at par value. They do not contain any interest stipulation or make interest payments. The difference between the note’s par value and its selling price is referred to as a discount.
We also renew promissory notes, offer safekeeping and confirm issuance of the note on request.
VTB discount notes are payable:
Interest bearing notes are payable:
To receive the principal and interest, your notes need to be called on time. If a note is called later than the specified maturity date, the bank will pay the principle and, in case of an interest-bearing note, the interest accrued on the par value as of the last day of its term.
Promissory notes can be called before term.All transactions with notes – including issue, repayment and calling – are non-cash. The money is transferred using the customer’s bank accounts with VTB or other institutions. The exchange rates for transactions in currencies other than the one in which the par value is denominated are determined by the bank.
VTB can, at the customer’s request, issue new notes instead of repaying called or matured notes. A note holder can submit notes before maturity to exchange them for different-par notes with the same total par value, subject to renewal, with the same maturity date.