VTB Turns Alchemist as Bond Ties Return to Gold: Russia Credit
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VTB Group, the first Russian lender to sell perpetual bonds and debt linked to the country’s benchmark equity index, is selling the nation’s debut notes tied to the price of gold.
VTB is offering 1 billion rubles ($32 million) of securities the company will redeem in December 2013 that pay a rate based on returns from gold up to a limit of 20 percent, according to a Nov. 16 regulatory filing. Gold for immediate delivery rose 11 percent this year to $1,730.44 an ounce. VTB’s dollar bonds due in February 2018 gained the same amount this year, according to data compiled by Bloomberg.