VTB to Sell Up to $3 Billion of Shares in 2013, CEO Says

VTB Group Chief Executive Andrei Kostin said Russia’s second-biggest lender may sell as much as $3 billion of new shares this year, the state-controlled lender’s first offering since 2011.

The Moscow-based bank may sell “from $1 billion to $3 billion” of stock, Kostin said in a Bloomberg Television interview today at the World Economic Forum in Davos, Switzerland.

VTB last sold shares at $6.25 per global depositary receipt in February 2011. That’s about 60 percent more than the current value of the stock, which rose 1.6 percent to $3.93 at 8:25 a.m. in London. The 2011 sale raised $3.3 billion.

“Any sale of new shares would be better at a price above or the same as before,” Kostin said.

The Russian government has said it plans to sell all of its stake in VTB by 2016. First Deputy Prime Minister Igor Shuvalov last week said the bank was in talks with sovereign-wealth funds from China and Kuwait and would sell at least $3 billion of stock at a price no less than that of the 2011 offering.

His insistence on a higher price may mean “privatization is much further away than previously thought,” Julian Rimmer, a trader of Russian shares at CF Global Trading in London, said last week.

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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