VTB issues new Russian debt market product

Russia’s VTB Group has launched a new product platform for the domestic debt market.

The platform issued ruble bonds under Russian law totaling RUB5bn with a fixed coupon rate of 0.1% and with an additional income linked to the growth of the MICEX.

The bonds will be placed and traded on the MICEX-RTS exchange and VTB Bank will act as guarantor for all payments connected to the bonds.

“Instruments issued on the basis of this platform will be attractive to not only institutional clients, but also private investors due to their convenient structure, ability to be linked to a wide range of basic assets among them commodity groups, indices, interest rates and their attractive cost,” the bank said in a statement.

“This is a significant step in our ability to offer our asset-side client base access to a wide range of underlyings via a structure which has obvious advantages in terms of risk profile.  I am particularly pleased that the first opportunity provided by this initiative is an equity-linked instrument as I believe there is huge potential as investors seek alternative ways to access the domestic equity markets,” said Mark Richardson, global head of equity derivatives at VTB Capital.

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