02 December 2003 23:42
VTB head says placement of first Eurobond issue successful
MOSCOW. Dec 2 (Interfax) - President of Russia's Vneshtorgbank (VTB) Andrei Kostin has described the placement
of the bank's first $300 million Eurobond issue, which took place in London on Monday, as successful.
He said the bank had never considered placing Eurobonds at any cost.
"We have been saying that the amount of Eurobonds may reach $500 million, but it was crucial for us to enter
world markets with the best yield, not volume indicators," he said.
Kostin said the bank had to drop a significant number of investor bids to prevent the growth of yields in the first
Eurobond issue.
He said the placement time was quite difficult, due to growing profitability of Russian Eurobonds, and also the fact
that the securities of other Russian issuers are traded over the counter with a discount of up to 200 basis points.
"In conditions of a soft market, we did quite well and are ready to continue the program of borrowing through
Eurobond placement," Kostin said.
He added that the next issue of Eurobonds may be placed within the next six months. They will be meant for a board
circle of investors, including in America and Asia.
VTB has approved a program for borrowing $2 billion on international markets within five years.
Its subsidiary, VTB Capital, on Monday placed a debut issue of five-year Eurobonds worth $300 million. The coupon is
6.875%, and the spread is 339 basis points against US bonds. The bonds come due on December 11, 2008. [RU ASIA EUROPE
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