OREANDA-NEWS. December 13, 2010. JSC VTB Bank has successfully placed its debut Chinese Yuan (CNY) 1 billion issue under its Programme No.2 for the Issuance of Loan Participation Notes. VTB is the first Russian issuer of bonds on the Chinese market and the first EM issuer from outside China to place bonds denominated in CNY, reported the press-centre of VTB Bank.

The order book of the transaction was significantly oversubscribed with Asian investors covering approximately 90% of the issuance. More then 50% of the total demand came from Hong Kong and 30% from Singapore.

CNY 1 billion 2.95% Notes due 2013 will be issued at par value by VTB Capital S.A., Luxembourg and listed on the Irish Stock Exchange. HSBC and VTB Capital plc are the Joint Lead Managers for the issue.

Deputy Chairman and CFO of JSC VTB Bank Herbert Moos said:
“We are really proud of being the first ever Russian issuer to tap the Chinese currency market. This transaction is consistent with our debt diversification strategy which has a strong specific focus on establishing a new investor base in Asian markets. The deal has been priced through our USD secondary curve which is in line with our strategic practice of optimizing the costs of liabilities and tightening the pricing of our wholesale borrowings. We believe this successful transaction establishes a very important benchmark for Russian issuers on the Chinese market and will support the growth of Asian investors’ interest in Russian risk.”