Bank of Moscow does not use call-option for $400 mln in subordinated Eurobonds

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Bank of Moscow does not use call-option for $400 mln in subordinated Eurobonds

MOSCOW. May 10 (Interfax) - Bank of Moscow , which is part of VTB Group , has not exercised its call-option on a $400 million issue of subordinated Eurobonds. The call-option came into effect on Thursday.

SPV-company Kuznetski Capital said at the end of April that the bank would not recall the Eurobonds from the market. The bonds mature in 2017 and have a rate of 6.807%.

The new rate on the issue following the call-option's date was set at 4.75%.

VTB's deputy CEO and CFO, Herbert Moos, told journalists at the end of April that Bank of Moscow would probably not recall the Eurobonds since the interest rate might be lower if the option is not exercised.