18 Nov 2010 18:57

VTB meeting with investors in Brazil; may place Eurobonds in reals - sources

MOSCOW. Nov 18 (Interfax) - VTB is conducting meetings with fixed-income investors in Brazil this week and may place real-denominated Eurobonds in the next one or two weeks, two informed sources told Interfax.

The Russian bank is meeting with select investors in the runup to a placement of Eurobonds denominated in real, one of the sources said.

VTB Capital and Brazilian BTG Pactual are organizing the meetings.

The other source said the meetings began on Wednesday and would conclude on Thursday. "If VTB sees enough demand, a deal could take place next week or in two weeks. The sum will not be large, the equivalent of several hundred million U.S. dollars," he said.

The placement would be on a par with VTB's placement of Eurobonds denominated in Singapore dollars in July.

VTB CEO Andrei Kostin told journalists at the beginning of September that the bank was considering placing bonds in Hong Kong and South Korea.

"We have done Singapore, Switzerland. Now we are looking at other countries: Hong Kong, Korea, etc," he said.

"We borrow to the extent it is needed. Our policy has changed a bit: we take a little in various countries, but without lowering yields. We will continue this policy," Kostin said.