VTB Capital issues Micex index-linked ruble bonds

Moscow-based VTB Capital has issued ruble bonds to a total of one billion rubles ($32m) linked to the Micex index.

International rating agency Moody’s has assigned a rating of Baa1 to the bonds, which have a tenor of a little more than a year and have been put on sale at Moscow’s Micex stock exchange. VTB Bank, VTB Capital’s parent group, is the guarantor of the issue.

The value of the Micex index-linked variable coupon is limited to 20%, but if the index falls, the bond holders will be returned all their investments plus the fixed coupons of 0.1% per year, according to a statement from VTB Capital.

“VTB Capital continues to create new investment products as part of the domestic structured bond programme. The new bond issue confirms the growing interest of Russian investors in structured investment products,” the statement quoted Dmitry Suspitsyn, head of equity structuring at the firm, as saying.

Sorry, comments are closed for this post.