JSC VTB Bank has successfully placed its first Eurobond issue of CHF 750 million under its Programme No. 2 for the Issuance of Loan Participation Notes ("Eurobonds").
The size of the deal was initially increased from CHF 150 million to CHF 450 million and further increased to CHF750 million due to significant investors’ demand.
CHF750 million of 7.5% Notes due 2011 will be issued at par value by VTB Capital S.A., Luxembourg. The Notes will be listed on the Swiss Stock Exchange.
BNP Paribas and VTB Capital plc are the Joint Lead Managers of the issue.
Nikolai Tsekhomsky, the Member of the Board of JSC VTB Bank, said: "This deal is the largest placement in Swiss francs by a Russian issuer. The access to the Swiss market allows the VTB Group to diversify its investor base and to broaden the sources of funding".
VTB Group is a leading Russian financial group with a strong tradition in Russia and the CIS, and a presence in more than 20 countries around the world. The Russian government is VTB's majority shareholder, with a holding of 77.5%. 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 across Russia, certain other CIS countries and a number of countries in Western Europe, Asia and Africa. As of December 31 2008, VTB was the second largest financial group in Russia by assets (US$ 126 bn) and by deposits (US$ 37,5 bn). VTB is one of the top three retail banks in Russia with a network of 1020 sales offices in Russia and the CIS. In 2008, VTB launched its investment banking business which operates from Moscow, London, Singapore and Dubai.
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