Private individuals given right to redeem VTB bonds early amid merger with Post Bank

MOSCOW. March 12 (Interfax) - Holders of exchange and structured VTB bonds are now entitled to demand early redemption of these securities after the covenant is incurred - namely, after the bank merges with Post Bank, VTB said in a disclosure.

VTB published a statement about its reorganization in the State Registration Bulletin on March 11. Private individuals are to submit requests for the early redemption of bonds through the court within 30 days of the publication date in the newsletter.

"A private individual who holds VTB bonds is entitled, in accordance with the provisions of Article 60 of the Civil Code of the Russian Federation, to demand the early fulfilment of obligations under the bond terms. Under Section 6 of Article 23.5 of Federal Law No. 395-1 from 02.12.1990 on banks and banking activity, this right does not extend to bondholders which are legal entities," the disclosure reads.

Exchange bonds redeemed early will have a value of 100% of the face value plus accumulated coupon yield. The early redemption value for structured bonds could be lower than the face value and is determined by the resolution on the issue of the bond. Subordinated bond issues cannot be redeemed early.

As reported, VTB shareholders approved a merger with Post Bank on February 19. The latter was founded in 2016 by VTB and Russian Post as a retail bank, developing into a large-scale regional chain based within post offices. In late 2024, VTB bought Russian Post out of its stake in Post Bank and consolidated 100% of the bank's shares. The banks will finish merging fully in May 2026, as Post Bank gradually begins to operate under the unified VTB brand.

VTB currently has 59 exchange bond issues in circulation, including investment bonds, totaling 364.1 billion rubles, as well as 705 classic bond issues, including subordinated and structured bonds, totaling 445.99 billion rubles. There are also six subordinated and replacement bond issues totaling $2.8 billion, three subordinated bond issues totaling 169.4 million euros and a structured bond issue of CNY 2.5 million.

Post Bank, with assets of 334.5 billion rubles, was 29th in the Interfax-100 ranking of the country's major banks in 2025.