On the 21st of December 2010 VTB Bank (Kazakhstan) Subsidiary JSC performed a primary distribution of a part of the first issue of bonds with the maturity of 4 years and 7% coupon rate per annum by means of subscription.
The planned volume of placement is 3 milliard tenge that is 20 % of the registered volume of issue. 11 institutional investors of the Republic of Kazakhstan (second-tier banks, pension funds, insurance, brokerage and management companies) participated in the subscription. Volume of the applications made exceeded the planned volume of placement by two times and amounted to 6,27 milliard tenge at par value of the bonds.
Following the results of the subscription the Bank satisfied the applications made with yield up to 5.5% per annum by means of increasing the volume of placement up to 3.78 milliard tenge at par value of the bonds. The Bank considers that the yield of placement is in full compliance with the current state of the bond marker of the Republic of Kazakhstan and show investors’ confidence in the Bank.
This issue of the bonds with the rating appraisal "ВВВ-" by Fitch Ratings is the first one for the Bank. All procedures connected with the issue were performed by the Bank independently.
The placement was performed by means of involving of Eurasian Capital JSC as an underwriter. The bonds were entered in the official list of Kazakhstan Stock Exchange JSC under the category “Debt securities with rating appraisal”.
The Chairman of the Management Board of VTB Bank (Kazakhstan) Subsidiary JSC Mr. Sergey Gussarov said: «The Bank plans to direct the monetary funds raised as a result of placement of the bonds to crediting of the real economy sector of the Republic of Kazakhstan. Particularly, the Bank will credit big, medium and small business entities with positive credit history».
For reference:
VTB Bank (Kazakhstan) Subsidiary JSC is a wholly-owned bank of Russian VTB Bank JSC servicing legal and physical entities.
The Authorized Capital Stock of the Bank amounts to 9 milliard tenge.
In September 2010 the Bank was conferred with the international rating at the level “BBB-”/ forecast “Stable” from the Agency “Fitch Ratings”, which show of positive and stable financial position of the Kazakhstan Subsidiary Bank.