MOSCOW, June 20 (RIA Novosti) - Russia's VTB Group is planning to raise $10 billion in loans on foreign markets this year, a senior official at the state-controlled financial group said Wednesday.
Denis Ursulyak, senior vice president of VTB Bank, said the figure reflects the total amount of funds planned to be raised by the bank and other subsidiaries of VTB Group.
He said VTB Group was considering raising funds in different currencies, including Australian dollars and the Swiss francs, to diversify the bank's investor base.
Most of the funds will be raised through the issue of bonds. VTB Bank will raise 75% of the funds, while the remaining amount will be attracted by VTB's subsidiaries, such as retail business VTB-24 and VTB Bank (Europe), Ursulyak said.
VTB Group includes three large Russian banks - VTB, VTB-24 and Promstroibank; seven banks in Western Europe, including VTB Europe; and four banks in former Soviet republics. VTB Group also has offices in Africa and plans to open new offices in Asia.
VTB Group's net assets calculated to International Financial Reporting Standards (IFRS) increased from $36.7 billion in 2005 to $52 billion in 2006.
VTB Bank, acting as the sole manager for the placement of 10 billion rubles ($385 million) in ruble-denominated bonds issued by Belarus, intends to complete the deal in fall 2007, Ursulyak said.
The vice president said talks were currently under way with the Belarusian side to agree on the deal's technical details. The bond issue is the first by a sovereign borrower on the Russian market, and therefore requires careful preparation, he said.
The Belarusian bonds are expected to have terms of three to five years, and will be issued in a single tranche, Ursulyak added.
