Deals of the Year 2012: VTB
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Deals of the Year 2012: VTB

Size $1 billion perpetual tier 1 bond issue
Bookrunners Citi, UBS, VTB Capital
return to the Emerging Europe Deals of the Year index

The overriding theme in central and eastern Europe in 2012, as with other emerging regions, was the dominance of the debt capital markets. As ever-decreasing yields in the developed world prompted a wave of liquidity into emerging market bond funds, borrowers across CEE were duly lifted by the flood.

This rising-tide effect, however, made the task of picking the year’s most notable transactions more challenging. With even weaker credits attracting record levels of demand from cash-rich bond buyers, neither bumper books nor wafer-thin spreads were enough in themselves to earn any deal an accolade – this year’s winners had to show something extra in innovation, timing or execution.

In the first of these categories, no deal scored higher than VTB Bank’s capital-raising exercise in July. The first ever tier 1 and the first perpetual deal out of Russia, it was also only the second subordinated debt issue from any emerging markets borrower to include features designed to maintain its capital-compliant status when the country makes the move to a Basle III regulatory regime.

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