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Russia's VTB bank suspends coupon payments on some subordinated bonds

Sanctions-hit VTB bank VTBR has temporarily suspended coupon payments on a number of subordinated bond issues, the Russian state-controlled lender said in a statement on Tuesday.

VTB, Russia's second largest lender, was placed under sanctions by the West over what Moscow calls its special military operation in Ukraine.

"VTB complies with all capital adequacy ratios set by Russia's central bank and is implementing measures to strengthen its capital position, which will allow a return to coupon payments on these bond issues in the future," it said.

The suspension will affect a coupon payment on VTB's perpetual subordinated Eurobond (RU081059683=) which was due on Tuesday, the bank said.

VTB is considering replacing this Eurobond with a local rouble subordinated bond in the mid-term, it added.

The suspension will also affect coupon payments on 12 series of VTB's perpetual subordinated bonds in 2023.

The measure is stipulated by the terms of the bond issues and has been approved by Russia's central bank, it added.

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