29.07.2024, 22:07
VTB has additionally placed replacement bonds under "eternal" subordinates
Source: OREANDA-NEWS
OREANDA-NEWS VTB's Supervisory Board approved the placement of an additional issue of replacement bonds for the issue of "perpetual" subordinated Eurobonds (ZO-T1), the bank announced on the disclosure feed.
The maximum issue volume is $552.27 million.
Additional placement is necessary in order to "serve the additional demand for replacement from friendly perpa holders who, for one reason or another, could not participate in the initial placement of the PO," for example, they did not have time to prepare documents, first deputy chairman of VTB Dmitry Pyanov explained to reporters at a conference call.
At the same time, the Supervisory Board approved changes to the SUB-T1 series bond program, the bank said. This is the "financial and legal capacity for (future - IF) "rublification" of the issue of ZO for "eternal" Eurobonds, Pyanov said.
According to him, in August VTB will initiate a survey of their holders. "We plan to apply to holders of currency subordinates with a survey in order to determine the most significant and comfortable parameters of "ruble exchange," he said.
VTB, according to Pyanov, is counting on "additional grounds" that will stimulate holders to participate in the planned "ruble exchange".
"After sanctioning the Moscow Exchange and avoiding setting the Central Bank's exchange rate on the basis of organized trading, we admit that there may be different temporary effects that will motivate today's holders of currency-denominated subordinated bonds to be converted into rubles due to the fact that payments on substituted currency-denominated subordinated bonds in rubles are made at the Central Bank's exchange rate"- said Pyanov. "We believe that this is a combination of our interests from a regulatory point of view, and some of our clients," he added.
VTB completed the replacement of perpetual subordinated Eurobonds in early June. The bank placed local bonds worth $1.68 billion, replacing almost 75% of the issue, the initial volume of which was $2.25 billion. It was possible to pay for the bonds upon placement both with Eurobonds of the corresponding issue and with the assignment of rights. Replacement bonds are denominated in dollars, all payments on such securities are made in rubles at the exchange rate of the Central Bank on the payment date. VTB has repeatedly noted earlier that it would like to "ruble" this issue of the PO.
The maximum issue volume is $552.27 million.
Additional placement is necessary in order to "serve the additional demand for replacement from friendly perpa holders who, for one reason or another, could not participate in the initial placement of the PO," for example, they did not have time to prepare documents, first deputy chairman of VTB Dmitry Pyanov explained to reporters at a conference call.
At the same time, the Supervisory Board approved changes to the SUB-T1 series bond program, the bank said. This is the "financial and legal capacity for (future - IF) "rublification" of the issue of ZO for "eternal" Eurobonds, Pyanov said.
According to him, in August VTB will initiate a survey of their holders. "We plan to apply to holders of currency subordinates with a survey in order to determine the most significant and comfortable parameters of "ruble exchange," he said.
VTB, according to Pyanov, is counting on "additional grounds" that will stimulate holders to participate in the planned "ruble exchange".
"After sanctioning the Moscow Exchange and avoiding setting the Central Bank's exchange rate on the basis of organized trading, we admit that there may be different temporary effects that will motivate today's holders of currency-denominated subordinated bonds to be converted into rubles due to the fact that payments on substituted currency-denominated subordinated bonds in rubles are made at the Central Bank's exchange rate"- said Pyanov. "We believe that this is a combination of our interests from a regulatory point of view, and some of our clients," he added.
VTB completed the replacement of perpetual subordinated Eurobonds in early June. The bank placed local bonds worth $1.68 billion, replacing almost 75% of the issue, the initial volume of which was $2.25 billion. It was possible to pay for the bonds upon placement both with Eurobonds of the corresponding issue and with the assignment of rights. Replacement bonds are denominated in dollars, all payments on such securities are made in rubles at the exchange rate of the Central Bank on the payment date. VTB has repeatedly noted earlier that it would like to "ruble" this issue of the PO.
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