VTB Capital made the second public placement by issuing rouble exchange traded bonds with a variable coupon linked to the price of gold. The volume of transaction is RUB 1bn with a tenor of 1 year and 6 months. The maximum value of the variable coupon is limited to 32,58% for the period. TKB Capital acted as joint bookrunner. The bonds are covered by VTB Bank suretyship.
Under the terms of the bond issue, investors’ profits will come from rising gold prices. In the event that the price of gold price falls, clients’ initial investments will be returned fully plus a fixed coupon of 0.1% p.a. The bond issuer is VTB Capital Finance, which is a part of VTB Capital. The bonds have Baa1 (sf) rating assigned by Moody’s and will be traded on the MICEX-RTS exchange.
This is the second issue linked to gold price and the fifth under the unique domestic structured bond programme registered by VTB Capital Finance in December 2011. Previous tranche with a variable coupon linked to the price of gold was issued in November 2012.
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