Russia's VTB Bank plans $1.25 billion add-on to 9½% perpetual notes

By Christine Van Dusen

Atlanta, Nov. 1 - Russia's OJSC VTB Bank is planning to price a $1.25 billion add-on to its 9½% perpetual notes, according to a company filing.

VTB Capital is the lead manager for the deal.

Issued by special-purpose vehicle VTB Eurasia Ltd., the notes will be used to fund a subordinated loan to VTB Bank.

The coupon will be fixed until Dec. 6, 2022 at 9½% and will be reset on that date and every 10 years thereafter based on an 806.7 basis points spread over prevailing Treasuries.

The original issue of $1 billion notes priced in July at par via Citigroup, UBS and VTB Capital in a Rule 144A and Regulation S deal.

VTB is a Moscow-based lender.

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