Promissory notes

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.

Promissory notes are issued by the Bank in Russian rubles, US dollars, euros, Swiss francs, Japanese yen and British pounds. Notes denominated in other currencies can also be issued with the approval of the VTB Treasury.

VTB discount notes are payable:

  • “at sight but no earlier than…”
  • “at a specific date”
  • “within a specific period after issue”

Interest bearing notes are payable:

  • “at sight but no earlier than…”

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 accepts its own simple promissory notes for safe custody. The bank also repays, on schedule or earlier, the notes in its custody.

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.

VTB Bank can, at the customer’s request, confirm issuance of simple promissory notes. This service helps reduce the risk of buying fake notes and is available at any of the bank’s (cash) offices and branches.