VTB Capital has successfully placed a USD 1.5bn Ukrainian sovereign Eurobond with a yield of 7.95% and a 10-year tenor.
The books were significantly oversubscribed with bids amounting to some USD 3.5bn. Ca. 250 investors took part in the deal, of which most were asset management companies. The bulk of the issue was scooped up by U.S. investors (75%).
Supported by flawless execution, the transaction quickly gained positive momentum which allowed VTB Capital to tighten the price at 7.95%, at the tight end of the initial price guidance in the 8% area, and to increase the size from USD 1bn to USD 1.5bn.
Ukraine is a strategically important investment banking market for VTB Capital, and the company is already an active arranger of DCM transactions. Earlier, VTB Capital took part in key Ukraine-based projects, such as the USD 2bn dual-tranche issue for the Ukrainian Sovereign in 2010 and the two placements of Metinvest Eurobonds (USD 500mn and USD 750mn in 2010 and 2011, respectively).
Andrey Solovyev, Global Head of DCM at VTB Capital, said: “VTB Capital was awarded the prestigious Ukrainian sovereign mandate for the second time in the row on the back of the very successful September 2010 Eurobond. This transaction strengthens our position as the leading DCM team in the region and the ideal partner for CIS sovereign issuers”.
Head of Press