OREANDA-NEWS. December 30, 2010. Subsidiary Organization JSC VTB Bank (Kazakhstan)  (Almaty), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has by an official letter of December 29, 2010 informed KASE of the following:

On December 21, 2010, SO JSC VTB Bank (Kazakhstan) made on the unorganized  market an IPO of part of the first issue of bonds with a circulation period of 4 years under 7% APR, by way of subscription.

The IPO's proposed value equals to KZT3 bn, which is by 20% less than the  issue's authorized volume. 11 institutional investors (second-tier banks,  pension funds, insurance companies, and brokerage and management companies) from the Republic of Kazakhstan have subscribed for the securities. The submitted orders numbered as many as 2 times the proposed placement volume, and made up  KZT6.27 bn, at the bonds' face value.

According to the subscription results the Bank has satisfied orders submitted indicating a yield of 5.5 % APR, thereby increasing the placement volume to KZT3.78 bn, at the bonds' face value. The Bank considers the placement's yield rate as being completely in accord with the current situation on Kazakhstan's stock market, and reflecting investors' trust in the Bank.

This bonds issue rated at "ВВВ-" by Fitch Ratings is the first for the Bank. All procedures related to the issue have been done by the Bank solely.

The placement was made with "Eurasia Capital" acting as the underwriter. The bonds have been admitted to the official list of Kazakhstan Stock Exchange as "Rated Debt Securities".

S. Gussarov, Chairman of the Board of SO JSC VTB Bank (Kazakhstan) says: "Funds raised as a result of the IPO, will be used for crediting the real sector of Kazakhstan's economy. In particular, the Bank is going to provide loans to large, medium-sized and small businesses that have a positive credit history".