(Adds VTB comment in the third paragraph)
MOSCOW, Oct 16 (Reuters) - Russia’s second largest lender VTB said on Tuesday it will issue perpetual subordinated bonds worth 20 billion roubles ($305 million).
The bank has approved the placement of the bonds, which will carry semiannual coupons. They will not have a maturity date and VTB reserves the right to redeem the bonds, it said in a statement filed via the Moscow stock exchange.
VTB told Reuters that the new bond placement is a part of the group’s general capital management process, without elaborating.
Subordinated bonds can be included in the bank’s capital - the cushion essential to issue loans and make acquisitions. (Reporting by Tatyana Voronova; Writing by Andrey Kuzmin; Editing by Susan Fenton and Robin Pomeroy)