-VTB Group introduces new product in Russia.
Global Banking News - 08 June 2012
VTB Group (RTSE: VTBR) (VTBR.MM) (LSE: VTBRq) has said that it has launched bonds totalling RUB5bn as part of a new product platform for the Russian debt capital market.
VTB said the bonds would have a fixed coupon rate of 0.1 percent, with an additional income linked to the growth of the MICEX-RTS exchange. The bonds are guaranteed by VTB bank and rated 'Baa1' by Moody's Investor Services.
The bonds issued on the new platform could be linked to a wide range of basic assets, including commodity groups, indices, interest rates, and others. The new platform will enable the development of new instruments with capital protection, while ensuring a guaranteed income in the form of a fixed coupon and the involvement of different types of assets, VTB said.
'This is a significant step in strengthening our capabilities to offer our asset-side client access to a wide range of underlyings via a structure which has obvious advantages in terms of risk profile. This new instrument, previously only issued by foreign banks, takes the Russian market another step closer to international standards,' said Herbert Moos, deputy president and chairman of the management board of VTB Bank.
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