Russian sub debt strife as VTB skips LT2 call
A subsidiary of VTB Bank said on Friday that it will not call one of its dollar lower tier two bonds at the first option date, becoming the first Russian financial institution to skip early redemption for economic reasons.
The bond price plunged on Friday and investors and bankers are worried that other issuers will follow suit.
VTB-North West said it will not call its $400m 6.2% 2020 lower tier two bonds in September because low US Treasury yields mean that the coupon is due to step down
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