The bonds will be placed at auction on the Moscow Interbank Currency Exchange (MICEX) February 22. The issue has been assigned a national long-term rating of AA+ (rus) by international rating agency Fitch.
VTB said it had formed a syndicate to place RAB's second bond issue, totaling 7 billion rubles (about $250 million) at par value.
The co-organizer of the issue is Deutsche Bank, and the co-underwriters are state-owned Vneshekonombank (VEB), investment banking multinational Credit Suisse First Boston, Austria's Raiffeisenbank, and several other credit organizations.
VTB forecasts a yield-to-maturity at placement of 7.9%-8.15% per year.
"However, the favorable market situation, the companies included in the syndicate to place the issue, and the high credit standing of the Russian Agricultural Bank enable us to expect a more successful placement," VTB said.
RAB, founded in 2000, is 100%-owned by the Federal Agency for the Management of Federal Property.
The bank implements state policies in agriculture and related sectors, financial services to these sectors, and retail banking services to the rural population.
RAB is one of the country's 20 largest banks and the second largest lender to the agricultural sector after Sberbank.
