VTB intends to resume paying coupons on subords in 2024

At the end of 2023, VTB will make a decision regarding previously suspended coupon payments on subordinated bonds in all currencies (rubles, dollars, euros), said Dmitry Pyanov, member of the VTB board. According to him, management is focused on ensuring that the limitation on coupon payments remains “one-year”.

In December last year, the bank He has made a decision to limit coupon payments at the end of 2022 and in 2023 on 13 subordinary issues in the amount of about RUB 24 billion. This was done as part of strengthening the capital position. According to Mr. Pyanov, the positive effect on capital from this measure in 2023 will amount to 36 billion rubles.

At the same time, the top manager called such a decision “pro-client”, explaining that the bank had “every chance to write off these subordinated loans due to the breakdown of the write-off triggers (reducing the capital adequacy ratio below the threshold value — “Kommersant”)”. According to him, “this is the deprivation of only one year of the coupon in return for not writing off these subordinated loans.”

At the same time, the bank will have to do something with subordins denominated in dollars (three issues for $450 million) and euros (four issues for €500 million) during 2023, perhaps the bank will offer ruble substitutes, Mr. Pyanov noted. “We, as a sanctions bank, will not be able to live long-term with a subordinary in foreign infrastructure,” he explained.

The capital of VTB Group at the beginning of 2023 amounted to 1.7 trillion rubles, having decreased by 5.4% over 2022. This year, VTB plans two additional share issues. The first was predominantly non-monetary. Its volume amounted to 149 billion rubles, 100 billion rubles. of which were converted from the subordinated deposit of the NWF into VTB ordinary shares. In addition, RNKB shares were invested in the capital (for 48 billion rubles). The remaining amount of 1 billion rubles. minority shareholders have made the right of pre-emption, said Mr. Pyanov. As a result of the additional issue in the first quarter of 2023, the share of the Russian Federation in the capital of VTB increased from 60.9% to 76.4%.

In the second quarter, VTB is going to conduct a second additional issue. As expected, it will be monetary, non-state and carried out by open subscription, the top manager noted. Within its framework, it is possible to attract 50-125 billion rubles, estimates Mr. Pyanov.

More details – in the material “Kommersant” “VTB reported for the losses of the entire sector”.

Olga Sherunkova