VTB Capital has successfully placed two-tranche USD 5.5bn Russia sovereign Eurobond issue. The size of the first 5 year tranche was USD 2bn and the second 10 year tranche amounted to USD 3.5bn. Spreads over US Treasuries were 125 and 135 bps at pricing with the coupon rates set at 3.625% and 5% respectively. Over 400 investors participated in the transaction. VTB Capital together with three leading global investment banks acted as a bookrunner.
VTB Capital has great experience arranging Eurobonds for Russian issuers. In 2009 VTB Capital was named #1 international bookrunner of Eurobonds out of Russia and CIS according to Cbonds and the absolute leader among international and local bond arrangers in the Eastern Europe according to Dealogic.
Andrey Solovyev, Global Head of DCM at VTB Capital, said: “The issue attracted huge demand, enabling us to price the transaction inside the Russian sovereign secondary yield curve. In fact, we have set a new benchmark for the Russian risk. We also significantly increased our investor base, attracting new accounts which we believe will be able to invest in other Russian transactions in the future”.
Head of Press