Capital and banking opportunities in Asia

Judy Lim, interim CEO for VTB Capital in Asia The efforts by Asian regulators to promote their respective local bond markets have collectively contributed to the increase in investors’ interest in regional bond issues.

China corporate debt issues also fuel the growth engines of the region’s public and private debt markets. At VTB Capital, we are highly committed to further developing our presence and participating in the strong growth of the Asian capital markets. The arrangement and placement of bond issues for our Asian clients has been a milestone for VTB Capital’s success in the region.

We recently acted as a joint lead manager and bookrunner for the successful placement of CNH1.5 billion high-yield bond issue for the Chinese property company Powerlong Real Estate Holdings Limited.

VTB Capital was also the only Russian investment bank that acted as a joint lead manager and joint bookrunner in the debt placements for Chinese property companies Logan Property Holdings and Redco Properties Group Limited. Our arrangement of a CNH bond issue for Beijing Capital marked the first CNH bond issue led by VTB Capital for a Chinese issuer.

These transactions complement our successes in arranging debt issues for Russian corporates tapping the local Singapore dollars and offshore CNY bond markets. These deals demonstrate to our clients that VTB Capital is a bank with strong emerging-markets (EMs) expertise and focus.

Strategically important

The Asia-Pacific region is strategically important to VTB Capital’s global business development and we continue to look to expand our presence here. Today, VTB Capital offers a diverse range of investment banking products and services in the region.

While VTB Capital remains anchored to our domestic core market, we see over 15% of our total profits now originating outside of Russia. Opportunities across EMs remain a core strategic focus for the growth of our business. Our sixth VTB Capital Investment Forum ‘Russia Calling!’ will begin on October 1, 2014. Priority topics for discussion will include the investment potential of EMs, as well as regional growth.

Thanks to the surging bilateral trade and business activities between Russia and Asia, especially with China, client interest has increased in our global banking business across corporate finance, advisory and equity and debt capital markets. Facilitating these deals through the debt capital markets is an increasingly important part of our business. We are able to draw on our experience gained in other emerging and frontier markets.

Instrumental

Since its establishment in 2008, VTB Capital has taken part in more than 470 ECM and DCM deals, which have been instrumental in attracting more than $194 billion-worth of investments to Russia and CIS. This has resulted in VTB Capital being ranked top for DCM deals in Dealogic’s league tables for the last three years. The bank also ranked first in ECM in Russia and the CIS, having arranged seven transactions for a total of $2.25 billion, which accounted for almost a quarter of the market.

VTB Capital’s expertise and strong global banking business reflect the wider trend of strengthening ties between Russia and the Asian markets. We firmly believe that thoughtfully deployed capital will make the most of the cyclical and structural opportunities in Asia and be rewarded for doing so.

Capital, backed by a long-term commitment to the EMs, has enabled VTB Capital to uncover opportunities that build our profitability and business franchise globally.

While our global competitors retreat from what are non-core markets for them, clients are increasingly welcoming a bank such as VTB Capital which focuses and embraces the unique challenges and rewards that come with operating in the EMs environment.

At VTB Capital, we know the importance of staying on course through the market cycle. We intend to propel our clients to capitalize on the opportunities that the Asian markets present.