VTB plans October start posting on the Moscow stock exchange day of the exchange bonds, the official report of the Bank. The limit of the program calculated on two-three quarters, up to 5 trillion As the representative of the Bank, the new tool can be interesting for a wide circle of investors who will be able to place in a rouble balances on the term “overnight”.
“We plan to start with daily placements in the amount of RUB 25 billion Then this amount may vary depending on the demand,” — said the official representative of the Bank.
In VTB assure that the upcoming bond issues not related to the fact that the Bank has some liquidity problems. “The planned issue volumes are not significant in the total Bank-executed payments. VTB is considering this product as a way of extending tools for the formation of liabilities, which will further reduce the cost of borrowing”, — said the press service of the credit institution.
According to analyst BKS Olga Naidenova, VTB may use the borrowed funds to some urgent payments. “This is one of the tools of management of their own liquidity, which will enable the Bank to reduce positions in some of the more expensive tools,” she says. Analyst ROSBANK Eugene Koshelev believes that VTB is using short-term bonds is to Fund short-term liquidity gaps, which he from time to time to refinance in the money market. “In terms of the active Deposit operations by the Central Bank of such instruments will increase interest rates in the money market on the horizon to one month and term up to three months,” he predicted.
VTB for a long period of time shows the high demand for ruble liquidity using the interbank lending market and REPO with the Central Bank, adds the analyst of Raiffeisenbank Denis Poryvai. “This is a funding currency position of the Bank through the swap. Short-term bonds of VTB can allow the Bank to balance the attraction, but is unlikely to improve the standard of liquidity”- the analyst considers.
According to statements by the company’s current liquidity VTB (H3) on 1 July was 65.9 per cent when the minimum acceptable 50%. For comparison, the savings Bank on the same date 149%, Gazprombank – 96,5%, in alpha Bank — 158%.
Short-term securities will help VTB to find the sources for the current installment and walkthroughs offers, says analyst “URALSIB capital” Dmitry Dudkin. “The Bank this year alone redeems securities by 85 billion rubles,” — he said, noting that placements of ruble bonds, the Bank did not in 2014. According to the analyst, VTB could be followed by other major players, in particular, Gazprombank.
Naydenova believes that the rate on bonds of VTB will be located slightly above the level of deposits with the Bank of Russia to make these securities more attractive to investors. He VTB in the official comments reported that the benchmark level of return on the securities will be the corridor between the Deposit rate of the Bank of Russia and interbank lending market. The participants will be able to buy bonds of the state Bank after 16:45 when the interbank lending market is already closed, but still have the ability to place funds on Deposit with the Central Bank.
“The Russian market of bonds with a maturity of one day will be placed for the first time. Potential issuers of short (up to 7 days) of bonds can be large banks with the opportunity to effectively place the borrowed funds”, — said the managing Director of the Moscow stock exchange Anna Kuznetsova.
Treasurer of a large Bank believes that VTB intends to launch a kind of analogue of the formal interbank market. “However, it is unclear how it will be convenient for the other parties, for example, compared to the daily deposits with the Bank of Russia”, — said the banker. VTB is trying to raise funds from the market, because it may not be profitable or even impossible in the necessary volume to attract short-term funds from the interbank market, says the head of dealing Desk Metallinvestbank Sergey Romanchuk. According to the banker, the issue of short-term bonds will allow VTB to reduce borrowing costs and expand the range of counterparties. “For example, at the expense of large corporate or funds that can buy bonds, thus introducing a new instrument in the money market,” he says.
Treasurer of the Bank included in the TOP 10, also notes that the government has used to solve problems with current liquidity through the interbank lending market. “But since that time, as the Central Bank began to conduct Deposit auctions its possibilities narrowed. Many more profitable to give the money to the regulator, as these tools do not need to create reserves,” he explained.
The President of the Association of corporate treasurers (ACC) Vladimir Kozinets said that for him, suddenly the emergence of a new tool that allows you to issue bonds during the day. However, he stressed that these kratkosrochnye bonds interest for the market. “For the customer, providing liquidity, it is important to place later, and get tools early as early as possible”, — he added.
The Ministry of Finance expect that one day bonds will contribute to a more even distribution of liquidity in the banking system. “They can become an alternative to placing deposits, the Central Bank”, — said on Wednesday, September 14, on the sidelines of the Fitch Raitings forum in Moscow, Deputy Minister of Finance of Russia Maxim Oreshkin. Weekly Deposit auctions of the Bank of Russia used from August to absorb excess liquidity in the banking sector, in order to avoid structural surplus. The last time the Bank of Russia has attracted in the market of 400 billion rubles under 10,39% per annum.
The Bank of Russia expects the transition to the structural surplus liquidity in the coming months, said the head of the Central Bank Elvira Nabiullina in the beginning of September, speaking at a banking forum “Banks of Russia — XXI century” in Sochi. According to Central Bank data, in August the volume of Bank loans from the Central Bank declined by 11% to 2.4 trillion rubles. at the same time in 1,3 times increased the volume of deposits that the Federal Treasury has placed in banks.
Experts believe that the output of the VTB in the tool, alternate deposits of the Central Bank, will not have much effect on the situation in the money market. “The bonds would buy the same banks, investment companies. The fact is that the money will remain in the market, and will not be sterilized as does the Central Bank”, — says Naidenov. According to Dmitry Dudkin, this tool is not a tool of monetary policy, since the money stays in the system, not absorbed.