VTB $1.5bn loan in limbo as sanctions grip market

Emerging market loan bankers were thrown into confusion on Wednesday following the US and EU’s decision to widen sanctions on Russia, amid contrasting views on whether the European component extends to new syndicated and bank loans. The most immediate impact would be on VTB’s prospective $1.5bn deal, which was said to be close to the line last week but has since stalled, while some bankers believe sanctions fears alone could spell a broader shut out of Russian borrowers from both bonds and loans.