VTBR.L Regulatory News (VTBR)

VTB places its Singapore dollar Eurobond issue

27 May 2011

NOT FOR DISTRIBUTION OR PUBLICATION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

On May 26, 2011, VTB successfully placed a Eurobond offering of SGD 300 million ("Offering") under its Programme No.2 for the Issuance of Loan Participation Notes.

Despite the fact that primary market activity has been fairly sporadic over the past weeks, VTB was able to successfully navigate recent volatility and to continue fulfulling its funding plan for the current year.

Excellent investor response enabled VTB to achieve its pricing targets. The transaction was placed with high quality accounts of Asset Managers, Private Banks and Banks, thereby driving demand. Almost 98% of the issue was placed with key accounts from Singapore, Hong Kong and other Asia-Pacific countries.

SGD 300 million of 3.4% Notes due 2014 will be issued by VTB Capital S.A., Luxembourg. OCBC and VTB Capital are Joint Lead Managers for the Offering. The Notes will be listed on the Singapore Exchange (the "SGX-ST").

Deputy Chairman and CFO of JSC VTB Bank Herbert Moos said: "We are very pleased with this transaction which marks another important achievement for VTB. Asian markets remain an important focus for VTB providing valuable diversification of funding sources. This issue is our third transaction closed on local Asian currency markets, following the success of our inaugural SGD and CNY Eurobonds issued in 2010 attracting key Asian accounts. VTB's solid credit profile and strong name recognition in Asia allowed for solid execution at ambitious levels".

Admission of the Notes to the Official List of the SGX-ST is not to be taken as an indication of the merits of VTB or the Notes. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this announcement.

These materials are not an offer for sale of securities in the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration under the Securities Act. The issuer has not registered and does not intend to register any part of the offering in the United States or to conduct a public offering of any securities in the United States.

This document is an advertisement for the purposes of applicable measures implementing Directive 2003/71/EC (such Directive, together with any applicable implementing measures in the relevant home Member State under such Directive, the "Prospectus Directive"). A prospectus and supplemental prospectus prepared pursuant to the Prospectus Directive has been published, which can be obtained from Citibank, N.A. at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB. Investors should not subscribe for any securities referred to in this document except on the basis of information contained in the prospectus or supplemental prospectus.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any Notes will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

Information contained in this document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person, and does not constitute an advertisement or offering to non-qualified investors of any securities in the Russian Federation. The Notes have not been and will not be registered in the Russian Federation or admitted to public placement and/or public circulation in the Russian Federation. The Notes are not intended for "placement" or "circulation" in the Russian Federation unless and to the extent permitted under Russian law