VTB Capital has successfully placed Russia’s sovereign RUB 40bn 7-year Eurobond issue, with the coupon of 7.85% p.a.
This transaction represents the largest ever local currency international bond issue. The books were almost two times oversubscribed with orders from over 150 investors. That allowed to place the issue below the initial price guidance.
Investor allocations by geography were United Kingdom (46%), United States (27%), Continental Europe (22%), and Russia (5%). Allocations by investor type were Fund Managers (70%), Banks & Retail (20%), and Insurance & Pension Funds (10%).
In April 2010, VTB Capital placed two-tranche USD 5.5bn Russia sovereign Eurobond issue. VTB Capital has also placed two sovereign Eurobond issues for Ukraine (USD 2 and USD 1.5bn). 2010 league tables show VTB Capital as #1 Eurobond bookrunner in Russia (Dealogic, Cbonds) and #1 local bonds bookrunner by Bloomberg and Cbonds.
Andrey Solovyev, Global Head of DCM at VTB Capital, said: “Increasing commodities prices coupled with an improved investment climate and a low level of sovereign debt of Russia lead to a substantial demand from investors despite a difficult international capital markets backdrop”.
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