Russia's VTB Bank Signs $2 Billion Loan Facility

By Lukas I. Alpert

MOSCOW--Russia's second biggest financial institution, VTB Bank (VTBR.RS), said Tuesday it had signed a $2 billion loan facility with a group of foreign banks in the largest deal of its kind in the country since 2011.

The loan will be used for "general corporate purposes," and is structured with a three-year bullet repayment term and a margin of 150 basis points per annum over the London interbank offered rate, the bank said.

The lenders include Banc of America Securities Limited; Bank of China (UK) Limited; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Barclays Bank PLC; BNP Paribas (BNP.FR); China Construction Bank (London) Limited; Citibank, N.A.; HSBC Bank PLC; J.P. Morgan Limited; Mizuho Corporate Bank Ltd.; Société Générale (GLT.FR); Sumitomo Mitsui Banking Corporation Europe Limited; and Wells Fargo Bank, N.A. ( WFC ).

"We are very appreciative of the solid support that we received from participating banks and are very pleased with the transaction," said VTB President Andrey Kostin. "The success of this loan proves our strong reputation in the industry, and we are looking forward to further strengthening of our credit profile internationally."

The transaction stands as the largest syndicated facility by a financial institution in Russia since 2011, VTB said.

Write to Lukas I. Alpert at lukas.alpert@dowjones.com

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