VTB may place add'l term-less Eurobonds this fall - Kostin
RUSSKY ISLAND (VLADIVOSTOK). Sept 7 (Interfax) - The head of VTB , Andrei Kostin, has said the bank might place additional subordinated Eurobonds with no fixed term this fall.
"I'm not ruling out that this autumn the additional demand there was for the original issue will be met," Kostin said at a briefing during the Asian-Pacific Economic Cooperation (APEC) summit on Russky Island in Vladivostok on Friday.
"First of all, we will look at demand and at how the current issue is trading. Secondly, we will look at how open capital markets are," Kostin said.
Issue volume could be determined based on demand that was not satisfied with the first issue of the bonds, he said. "I think it cannot exceed the amount of the original issue," he said.
"We have made no final decision related to pricing yet. I think a decision will be made during September of this year," Kostin said.
VTB place the original issue of these Eurobonds in July - $1 billion worth at 9.5% per annum. The coupon rate is to be set before the first option (10.33 years), and then will be revisited every 10 years. The placement of bonds with no fixed term allows the bank to carry this loan into tier-1 capital. To this point, Russian companies had not attempted this kind of debt placement on foreign markets.