Russia’s VTB Bank begins tender offer for number of note series

By Susanna Moon

Chicago, Oct. 19 – JSC VTB Bank said it began tender offers for a number of series of notes issued by VTB Capital SA.

The bank is offering the purchase up to $750 million of the following five series of notes with pricing for each $1,000 principal amount to be set under a modified Dutch auction:

• $2 billion ($1,723,561,000 outstanding) 6% loan participation notes due April 12, 2017 with a minimum purchase price of $1,032.50;

• $750 million ($590.43 million outstanding) 6.315% loan participation notes due Feb. 22, 2018 with a minimum purchase price of $1,040;

• $2 billion ($1,324,858,000 outstanding) 6.875% loan participation notes due May 29, 2018 with a minimum purchase price of $1,055;

• $1 billion ($887,561,000 outstanding) 6.551% loan participation notes due Oct. 13, 2020 with a minimum purchase price of $1,030; and

• $1.5 billion ($1,470,500,000 outstanding) 6.95% loan participation notes due Oct. 17, 2022 with a minimum purchase price of $935.

The bank also is offering to buy back any and all of the following three note series with pricing for each $1,000 or CHF 1,000 principal amount:

• A$500 million (A$420,765,000 outstanding) 7.5% loan participation notes due Dec. 11, 2017 with a purchase price of A$1,020;

• CHF 600 million (CHF 430.35 million outstanding) 3.15% loan participation notes due Dec. 16, 2016 with a purchase price of CHF 5,100; and

• CHF 300 million (CHF 218.16 million outstanding) 2.9% loan participation notes due May 25, 2018 with a purchase price of CHF 5,075.

Finally, the bank also is offering to buy back CHF 100 million of

• CHF 350 million (CHF 322.5 million outstanding) 5% loan participation notes due Oct. 24, 2024 with a purchase price of CHF 4,600.

The bank also will pay accrued interest.

The notes, except for the dollar 2022 notes, the CHF 2024 notes and the dollar 2035 notes, were issued for the purpose of financing a loan to the company, according to a bank notice.

The dollar 2022 notes and the CHF 2024 notes were issued to finance a subordinated loan to the bank and, for the dollar 2035 notes, for the purpose of financing a deposit with Deutsche Bank Luxembourg SA for the purpose of financing a loan to the bank.

The bank said it reserves the right to purchase less than or more than the caps listed.

The offers allow the bank to acquire some of its outstanding eurobonds, which reflects its liquidity and is consistent with its liability management objectives, the bank said.

The offers will end at 10 a.m. ET on Oct. 27, with settlement set for Nov. 3.

The dealer managers are ING Bank NV, London Branch (+44 (0) 20 7767 5107, liability.management@uk.ing.com or fax +44 (0) 20 7767 7284), J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) and VTB Capital plc (liability.management@vtbcapital.com). The tender agent is Lucid Issuer Services Ltd. (+44 207 704 0880, David Shilson, or vtb@lucid-is.com).

VTB is a Moscow-based lender.

© 2015 Prospect News.
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