VTB Group acted as arranger of Russian Railways bond issue (series 09). OJSC Gazprombank, OJSC TransCreditBank, CJSC Troika Dialog Investment Company and the Bank of Russia are also among the arrangers.
Capital Investment Company was co-arranger of the issue.
The bond was fully placed. As a result of the auction 10 bids of investors were satisfied. The first to the third coupon rate was set at 13.5% p.a. that is equal to the effective yield of an eighteen-month offer.
Total volume of the issue amounts to RUB 15 billion and matures in 5 years. The National Depositary Centre participated as a paying agent and depository of the bonds.
Yuri Soloviev, Head of VTB Group Investment Business said: "Our strategy is to provide customers in Russia and abroad with the best possible and financial business solutions. Together with our partners we succeeded in placing the Russian Railways bonds, despite the unfavorable environment in the foreign borrowing market. We are sure that the funds raised will contribute to further development of the Russian Railways' and Russian infrastructure projects on the whole".
VTB Group is a leading Russian financial group with a strong history tradition in Russia and the CIS, and a presence in 17 countries around the world. The Russian Government is VTB's majority shareholder, with a 77.5% holding. The remaining 22.5% of the shares are traded on the RTS and MICEX in Russia, and VTB's global depositary receipts are traded on the London Stock Exchange. VTB offers a wide range of services in corporate, retail and investment banking in Russia, some other CIS states and a number of countries in Western Europe, Asia and Africa. As of 1 July 2008, VTB was the second largest financial group in Russia by assets (USD 108.8 bln.) and by customer accounts (USD 44.6 bln.). VTB Group is among the top three national retail banks with a network of 1001 outlets in Russia and the CIS. In 2008, VTB launched its Investment Banking business, which operates from Moscow, London and Singapore offices.