"On June 27, 2005, Vneshtorgbank presented the third issue of Eurobonds worth $1 billion. The issue took place under the Luxembourg-based VTB Capital S.A.'s program for placing mid-term borrowing instruments totaling $3 billion," the report said.
The Eurobonds were issued at face value for 30 years and with a put option for holders exercisable after ten years. The coupon rate has been set at 6.25%.
The Eurobonds will be listed on the Luxembourg exchange.
According to VTB, a 30-year term of the issue is a record for Russia's financial institutions.
The Eurobonds were issued according to RegS/144À standards allowing them to be placed in the United States and markets in Europe and Asia.
Deutsche Bank Securities Inc. is the manager of the issue's placement.
Under the program for placing mid-term borrowing instruments totaling $3 billion, VTB previously placed five issues of VTB Capital S.A.'s Eurobonds: five-year Eurobonds in December 2003, with an additional issue in March 2004, totaling $550 million; one-year Eurobonds in April 2004 totaling $325 million and redeemed in April 2004; three-year Eurobonds in July 2004 totaling $300 million; seven-year Eurobonds in October 2004 totaling $450 million; and 1.5-year Eurobonds in December 2004 totaling $350 million.