+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Transactions of VTB Bank with debt and equity securities

Vol. 27, Iss. 5, MAY 2021

Received: 18 January 2021

Received in revised form: 5 February 2021

Accepted: 19 February 2021

Available online: 28 May 2021

Subject Heading: Banking

JEL Classification: G12, G21, G32

Pages: 998–1021

https://doi.org/10.24891/fc.27.5.998

Larisa A. CHALDAEVA Financial University under Government of Russian Federation, Moscow, Russian Federation
chaldaeva45@mail.ru

https://orcid.org/0000-0001-6203-4968

Arsenii A. DANILIN Financial University under Government of Russian Federation, Moscow, Russian Federation
astra1001a@yandex.ru

https://orcid.org/0000-0003-3097-6031

Subject. This article covers VTB's operations with securities and their effect on bank's financial sustainability and growth in assets. The main focus of the study was put on secondary public offering in 2013 and the issue of perpetual bonds in 2012 by VTB.
Objectives. We assess the dynamics of VTB's balance sheet items as a result of secondary public offering. We analyze consequences of perpetual bonds issued in terms of their lucrativeness for the issuer and investors. The study identifies factors affecting the market value and liquidity of VTB's perpetual bonds on the MOEX.
Methods. The research methods are based on the factor analysis of VTB’s balance sheet items. Statistical, graphical and economic analyses are also used in the study.
Results. Secondary public offering caused a significant growth of the bank's assets. The issue of perpetual bonds allows increasing tier 1 capital of VTB.
Conclusions and Relevance. Based on the results, recommendations were presented for VTB bank concerning the equity and debt securities. We determined negative consequences that might happen after another issue of bonds, which can influence an amount of the State's share in VTB. We especially consider the future issue of VTB's bonds in terms of coupon payments, which may help reduce expenditures on the servicing of debt bonds issued.

Keywords: SPO, perpetual bond, VTB, assets

References:

  1. Glebova A.G., Ivanovskaya Zh.V., Lukashenko I.V. [Trends and prospects for the stock market integration of Eurasian Economic Union]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2020, vol. 2, no. 7, pp. 141–151. (In Russ.)
  2. Merkulina I.A., Kazakova A.V. [Directions for increasing the efficiency of small and medium-sized industrial enterprises in the context of import substitution]. Mezhdunarodnyi nauchno-issledovatel'skii zhurnal = International Research Journal, 2007, no. 3-2, pp. 94–96. (In Russ.)
  3. Muravitskaya N.K., Adusheva A.Yu. [Hedging as a way to minimize risks of economic entities]. Vestnik Povolzhskogo gosudarstvennogo universiteta servisa. Seriya: Ekonomika = Vestnik of VRSUS. Economics, 2019, no. 2-3, pp. 83–91. (In Russ.)
  4. Pechalova M.Yu. [Issues of implementing investment projects under economic sanctions]. Bankovskoe delo = Banking, 2017, no. 4, pp. 42–54. (In Russ.)
  5. Sokolova E.S., Fedyunin A.S. [Methodological aspects of selecting priority areas of international business for Russian companies]. Samoupravlenie, 2019, vol. 2, no. 1, pp. 146–149. (In Russ.)
  6. Sokolova E.S., Fedyunin A.S. [Enhancement of the relationships between banks and private banking customers in Russia and abroad]. Innovatsii i investitsii = Innovations and Investments, 2019, no. 2, pp. 102–104. (In Russ.)
  7. Fedorova E.A., Guzovskii Ya.E., Lukashenko I.V. [Evaluating the applicability of modified beta coefficient in the Russian stock market]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, no. 11, pp. 2163–2176. (In Russ.) URL: Link
  8. Tsvirko S.E. [Modeling of sovereign welfare funds’ management]. Izvestiya Volgogradskogo gosudarstvennogo tekhnicheskogo universiteta = Izvestia VSTU, 2016, no. 1, pp. 147–155. (In Russ.)
  9. Tsvirko S.E. [Modeling provision for Russian debt strategy]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2016, no. 6, pp. 787–792. (In Russ.)
  10. Chaldaeva L.A., Danilin A.A. [Satte bond loans market and its influence on the Russian economy]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2017, vol. 2, no. 11, pp. 61–69. (In Russ.)
  11. Chaldaeva L.A., Klyshko R.N. [The Russian stock market and factors influencing its dynamics]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2018, vol. 4, no. 1, pp. 76–82. (In Russ.)

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 27, Iss. 5
May 2021

Archive