Promissory notes
VTB Bank issues and buys discount or interest-bearing promissory notes. Simple
notes are issued to individuals as well as companies, both residents of Russia
and non-residents. We also renew promissory notes, offer safekeeping and confirm
issuance of the note on request.
About the promissory notes
Advantages
- The bank’s reliability guarantees safe investment in VTB notes
- VTB notes can generate additional income if used as a fixed-term financial instrument
- VTB notes can be used for paying counterparts
- The bank’s widespread branch network makes it convenient to receive and make payments on promissory notes at your local office
Types of promissory notes
- Interest bearing notes
- Discount notes
Interest bearing notes
VTB Bank issues interest bearing notes at their par value
with a stipulation of interest – a statement on the note stipulating
its interest rate
Interest bearing notes are payable
- “at sight but no earlier than…”
Discount notes
Are issued at a discount to par or at par value. They do not contain
any interest stipulation or make interest payments. The difference
between the note’s par value and its selling price is referred
to as a discount.
VTB discount notes are payable
- “at sight but no earlier than…”
- “at a specific date”
- “within a specific period after issue”
Information
- Issue and repayment
- Custody
- Renewal
- Confirmation of issue
Promissory notes are issued by the Bank in:
- Russian rubles
- US dollars
- Euros
- Swiss francs
- Japanese yen
- British pounds
Notes denominated in other currencies can also be issued
with the approval of the VTB Treasury
Receiving the principal and interest
To receive the principal and interest, your notes need to be called
on time.
If a note is called later than the specified maturity date, the bank will pay the principle and, in case of an interest-bearing note, the interest accrued on the par value as of the last day of its term.
Promissory notes can be called before term.
Transactions with notes
All transactions with notes – including issue, repayment and calling – are non-cash.
The money is transferred using the customer’s bank accounts with VTB or other institutions.
The exchange rates for transactions in currencies other than the one in which the par value is denominated are determined by the bank.
Custody
VTB accepts its own simple promissory notes for safe custody. The bank also repays, on schedule or earlier, the notes in its custody
Renewal
VTB can, at the customer’s request, issue new notes instead of repaying called or matured notes.
A note holder can submit notes before maturity to exchange them for different-par notes with the same total par value, subject to renewal, with the same maturity date.
Confirmation of issue
VTB Bank can, at the customer’s request, confirm issuance of simple promissory notes.
This service helps reduce the risk of buying fake notes and is available at any of the bank’s (cash) offices and branches.