Yuan Debut Gets VTB Lowest Yields in Dollar Snub: Russia Credit
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VTB Group, Russia’s second-biggest bank, has become the first company from an emerging market outside Asia to sell bonds denominated in Chinese yuan, cutting the cost of raising money by looking east rather than west.
VTB sold 1 billion yuan ($150 million) of three-year bonds yielding 2.95 percent today. The offering was “significantly oversubscribed,” with Asian investors accounting for about 90 percent of the sale, the bank said in a statement. VTB’s ruble bonds due in October 2013 are yielding 7.58 percent and the rate on its March 2015 dollar bonds is 5.395 percent, according to data compiled by Bloomberg.