REFILE-VTB plans perpetual Eurobond to support capital-IFR
(Corrects paragraph 7 to show that Orcel is deputy CEO of VTB Group, not VTB Capital)
MOSCOW, July 20 (Reuters) - VTB, Russia's second largest lender, plans to issue a dollar-denominated perpetual Eurobond to support its Tier 1 capital adequacy ratio, IFR, a Thomson Reuters news and market analysis service, said on Friday.
IFR added that VTB will meet investors through Citigroup, UBS Investment Bank and VTB Capital starting July 23.
"The road show to take place all around the world... Deal is expected to be priced next week," a banking source told Reuters.
VTB's Tier 1 capital adequacy ratio stood at 9.6 percent as of 31 March 2012, while total capital adequacy ratio was at 13.7 percent.
Perpetual bonds are permanent interest-only loans, allowing companies to take the capital gained and hold it without having to repay the principal amount - meaning they can, for example, count it towards capital.
The lender, whose capital adequacy ratios were hit by its takeover of Bank of Moscow and a recent share buy back, said in February it may need to bolster its capital if it is to grow at the same pace in 2012 as it did the previous year.
Given the significance of the deal, VTB Chief Executive Andrei Kostin, Chief Financial Officer Herbert Moos and Deputy CEO of VTB Group Riccardo Orcel are expected to chair the delegation, another source said.
Last week, VTB raised 400 million Singapore dollars ($319 million) via a three-year Eurobond, pricing the deal at a yield of 4 percent. ($1 = 1.2541 Singapore dollars) (Reporting by Maya Dyakina, Oksana Kobzeva and Katya Golubkova; Editing by Douglas Busvine)
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