VTB placing additional perpetual bonds, over $1 bln subscribed - source
MOSCOW. Oct 31 (Interfax) - VTB is offering an additional tranche of perpetual Eurobonds, with more than $1 billion already subscribed, a financial market source told Interfax late Tuesday.
The deal is expected to be closed by the end of the week. VTB is doing the book building independently.
VTB had not ruled out placing around $500 million in additional perpetual bonds by the end of 2012.
The bank placed a first tranche of $1 billion in perpetual bonds at 9.5% pa in July.
Price guidance for the new bonds is 100.5%, corresponding to yield of 9.42% pa.
VTB placed $1.5 billion in 10-year subordinated Eurobonds at the start of October at 6.96% pa. The bank calculates that the perpetual and subordinated bond issues have allowed it to boost its Tier 1 capital adequacy to 9.5% and total capital adequacy to 14.2%, the bank has said in a presentation for investors.
The bank's plans include one more placement of perpetual Eurobonds and additional share issue, the presentation said. This will allow VTB to increase its Tier 1 capital adequacy level to 10%-11% and general capital adequacy to around 15%, according to a strategy which should be approved in 2013.
The Tier 1 CAR to International Financial Reporting Standards (IFRS) fell to 8.9% from 9.0% during H1 2012 and overall ratio to 12.8% from 13.0%.
