23 June 2020

Test placement of the structured bonds of VTB Group

Russian structured bonds based on CLN model have been issued by an SPV – this is the first investment product of this kind of VTB Group

On 23 June VTB Group carried out the pilot placement of structured bonds. Russian structured bonds based on CLN model have been issued by an SPV – this is the first investment product of this kind of VTB Group. The transaction was carried out in a pilot mode in order to test the new financial instrument that will be available to the Group’s clients from now on.

LECAP team comprising of Michael Malinovskiy, partner, Sergey Volkov, counsel, and Dmitry Lisov, associate, provided full legal support in relation to the project. Jointly with VTB team, we developed the new investment product, developed payment mechanism structure, drafted and negotiated issuance documentation, provided support in relation to registration and placement on the issue.

The issuance documentation drafted by our team for the first time stipulates for a complex procedure for determining the bonds’ maturity date instead of the previously generally used defining of the specific maturity date. Such procedure for determining the bonds’ maturity date required significant amount of work with Russian securities’ infrastructure (namely, national settlement depository) in order for the maturity date to be displayed correctly.