VTB Bank readies UAH 1 bln in bond placements

Ukraine’s VTB Bank is planning to issue UAH 1 bln in bonds, Interfax reported on Friday, citing a filing with the Securities & Exchange Commission. The bank intends to place four new series of UAH local bonds with maturity in March 2014 (UAH 300 bln, 12.75%), August – September 2013 (UAH 500 bln, yields 12.25% and 12.5%, respectively) and October 2015 (UAH 200 bln, 12.5%).  The placements are to be held on the PFTS exchange. The bank plans to use 60% of the proceeds for lending and 40% for securities transactions. VTB Bank was Ukraine’s seventh largest bank, with UAH 35.9 bln in assets as of June 1, 2011, according to the National Bank of Ukraine.  Svetlana Rekrut: This will be VTB’s second round of placements this year after three series totaling UAH 1.0 bln maturing in 2015 and a coupon of 12.0%. VTB has good credit profile, but the UAH deficit on the market in the last two month might complicate its plans for a new bond placement.