VTB faced with low demand for one-day bonds

VTB on Monday held a one-day first placement of bonds with a nominal amount of 25 bln RUB with yield of 10.26% per annum, the Bank said.

The demand for one-day bonds VTB on the Moscow exchange amounted to 3 billion rubles, reported the press service of the credit institution. “This is consistent with our expectations,” — said the official representative of the VTB. He said that purchasers of the securities made by professional participants of the securities market and the medium and small banks.

VTB noted that it was quite a lot of test transactions for 1-100 lots. “Participants learn the format of the tool. We expect that over time, as new issues, volume of demand will gradually increase,” — said the representative of the Bank. One lot — 10 thousand.

Experts believe that the low demand for papers VTB is associated with the novelty of the instrument. “The market only have to learn it. Other tools used by the Central Bank and Ministry of Finance, — more clear and known. It could play a key role, if we talk about why the market sees a one-day bonds with care,” — said the chief economist of the Eurasian development Bank Yaroslav Lissovolik.

According to the economist of “Renaissance capital” Oleg Kuzmin, could also play a role that VTB has offered the lowest premium rate money market. “In such a situation it’s easy for someone to place in the repo or Bank deposits,” he said.

One-day rate Mosprime yesterday was on the level of 10.53%, the rate of the interbank market RUONIA was at the level of 10.33% per annum.

Earlier the analyst of Raiffeisenbank Denis Poryvai said that papers VTB under of 10.26% will be able to compete with the auction deposits of the Central Bank. “That is, the bonds are likely to buy the participants whose bids were not satisfied in the course of Deposit auctions”, — he wrote in his review.

VTB has announced plans to launch a program of one-day exchange-traded bonds for a total volume of 5 trillion rubles in September. As reported in 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”. The Bank’s representatives insisted that the impending 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 Dennis Breaking, VTB is a deficit of ruble liquidity, which is met through deposits from the Ministry of Finance and the refinancing instruments, the Bank of Russia. The analyst points out, citing statements by the company that the total debt of the Bank to the Finance Ministry and the Central Bank on October 1, 2016, amounted to 1.4 trillion rubles.