Corporate Communications

VTB Capital has successfully placed RUB 25bn MTS bond issue

16 November 2010

On 12 November, the books for RUB 25bn MTS bond Issues 7 and 8 were successfully closed.

Investors were offered a 10-year tenor worth RUB 15bn with a 5-year offer and a coupon of 8.3 – 8.6% per annum, as well as a 7-year tenor worth RUB 10bn with a coupon of 8.8 – 9.15%. Bids for MTS bonds came from over 70 investors and exceeded a total of RUB 41bn.

Acting as joint bookrunner with Gazprombank, Sberbank and Bank of Moscow, VTB Capital successfully placed the 10-year MTS bonds with a coupon of 8.15% and the 7-year MTS bonds with a coupon of 8.7%.

VTB Capital placed the MTS bonds at the bottom of the initial spread, marking the deal as very successful. This is the first placement of a 7-year below-investment-grade security in recent history. The corporate bonds enjoyed a MICEX A1 list placement, according to new stock exchange listing rules.

Alexey Konochkin, Deputy Head of DCM at VTB Capital, said: “In a difficult market, with high global financial market volatility, we have succeeded in attracting substantial demand and making a quality high-worth placement with an extensive tenor. In 2010 YTD, the VTB Capital team placed 45 issues totaling an approximate RUB 320bn”.

Press office

Head of Press
Natalia Cherepova

VTB Capital

Federation Tower West, 12, Presnenskaya emb., Moscow, 123100