Russia’s VTB Bank has successfully launched a S$400 million (approx $296.3 million) eurobond issue in the Singapore dollar bond market; the issue was specifically targeted at private banking investors, Asset magazine reports.

The Singapore Exchange-listed issue carries a coupon 4.2 per cent per annum with a two-year maturity, according to the bank’s promotional materials. Having initially targeted S$200 million, VTB has doubled the deal size due to an investors’ strong demand.

“As the issue was targeted at private banking investors who needed an absolute rate to invest, we had priced the deal when we built the books to S$200 million at 4.2 per cent coupon, after which we continued to receive orders from private banks. Within a day, the order book built in excess of S$400 million,” said Tan Lay Hoon, senior vice-president and head of capital markets at OCBC Bank. The bank acted as a joint lead manager for the transaction, along with VTB’s investment arm – VTB Capital.

“The VTB Bank SGD Eurobond is the first issue out of Russia in Singapore markets. This transaction paves the way for other strong Russian issuers to access this new funding market. In the near future we are planning to continue working in this market with our clients,” said Andrey Solovyev, global head of debt capital markets at VTB Capital.