VTB Plans 2 Aquisitions In 2011: Bank Of Moscow And Transcreditbank

The second largest state bank of Russia VTB expects to buy controlling stake or 100% of the Bank of Moscow in the first half of 2011, said the Head of the bank Andrey Kostin.


In this deal he sees the "greater synergy." "We have a total of 70 retail offices in Moscow, the Bank of Moscow - 140, Sberbank of about - 700. From the standpoint of the Moscow market it will add to our group positions perhaps on other regional markets."


Kostin believes that the coming year is only two acquisitions of Transkreditbank and Bank of Moscow.

Bank of Moscow Eurobonds

Moscow government controlled "Bank of Moscow" placed five-year Eurobonds for $ 750 million with a coupon rate of 6.699 percent per annum, said IFR source in banking circles.

"Book of applications (for Eurobonds)  significantly exceeded $ 2 billion. This fact  qualifies the "Bank of Moscow" as one of the highest quality borrowers from Russia ", - told Reuters news executive director of JP Morgan Albert Sagiryan.  

Initially, the bank oriented investors at yields in the range of 400-450 basis points over swaps market average, then narrowed the landmark to 415-425 basis points over swaps. 

Road Show kicked off production last week. 

The organizers of the transaction appear Credit Suisse, Goldman Sachs and JP Morgan. 

Get the comment of the "Bank of Moscow" has not succeeded.