Back

VTB Capital has placed ESG bonds for RUB 137 billion

In 2021 VTB Capital managed five placements of green and social bonds in the Russian and foreign markets with a total volume of RUB 137 billion.

VTB Capital placed the following EGS debt instruments:

- The issue of perpetual “green” Eurobonds of Russian Railways for CHF 250 million and 3.125% coupon. Russian Railways is a major ESG borrower in the local market and the only corporate borrower representing Russia in the green Eurobond market.

- Tap issue of perpetual Eurobonds of Russian Railways with 3.125% coupon for CHF 200 million.

- The issue of 4-year social Sovcombank Eurobonds for $300 million and 3.4% coupon. Sovcombank is the first Russian bank to issue social Eurobonds.

- The issue of 7-year “green” bonds of the city of Moscow for RUB 70 billion and 7.38% coupon. The International Capital Markets Association has included Moscow’s green bonds into its database of sustainable bonds.

- The issue of 5-year “green” bonds of Sinara-Transport Machines for RUB 10 billion and 8.7% coupon.

Andrei Solovyev, Global Head of Debt Capital Markets at VTB Capital, said:

"Now we are seeing an increase in investor interest in social and green bonds, and more and more market participants assess this driver as one of the most important when making an investment decision. Consequently, more issuers are considering issuing debt instruments with an ESG agenda. In 2022, we expect to see the results of intense activities focused on strengthening and improving the quality of ESG disclosure and planning on the part of issuers in the markets, and this may be reflected both in the number of green instruments and issues, and in the overall attractiveness of the Russian market to ESG investors. VTB Capital is actively working on similar issues and we hope that in 2022 the number of placements of such instruments will continue to grow.

Moreover, in the coming year we also see the potential for the technological development of the market, including new digitalization opportunities and emerging new financing structures for large, environmentally and economically relevant projects".

As reported by VTB Capital, the redemption of foreign currency Eurobonds in 2022 accounts for a little less than $18 billion. Many issuers have already refinanced the issues that were due to be redeemed next year. Nevertheless, if the market environment remains favorable, some companies are considering placement of bonds to refinance issues maturing in 2023-2024.

Since its inception in 2008, VTB Capital has attracted $286 billion into the Russian economy through 973 bond issues, including $132 billion via 184 international bond issues.

“Green” financing development is one of the topics that will be discussed at the 13th VTB Capital Investment Forum “RUSSIA CALLING!”. The forum will be held online on November 30 — December 1. Online broadcasts of the sessions and the forum program are available at the official website of the forum.