Bond VTBank 0% ( RU000A0NNM77 ) in RUB

Issuer	VTBank
Market price	100 % ▲
Country	Russia
ISIN code	RU000A0NNM77 ( in RUB )
Interest rate	0%
Maturity	01/01/2026
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Minimal amount	/
Total amount	1 000 000 000 RUB
Detailed description	VTB Bank is a major Russian state-owned bank offering a wide range of financial services including corporate and retail banking, investment banking, and asset management, both domestically and internationally. A notable fixed-income instrument issued by VTB Bank, a prominent Russian financial institution, is currently under market observation. This particular obligation, identified by ISIN RU000A0NNM77, carries a maturity date of January 1, 2026, positioning it as a relatively short-to-medium-term debt security. Denominated in Russian Rubles (RUB), the bond represents a significant issuance with a total size of 1,000,000,000 RUB. A distinctive feature of this bond is its stated interest rate of 0%. Coupled with its current market price of 100% (par), this implies that the instrument does not offer periodic coupon payments and, for investors acquiring the bond at its current par valuation, there would be no yield generated from interest payments or capital appreciation if held until maturity. This characteristic is often found in zero-coupon bonds, which are typically issued at a discount to their face value, with the investor's return stemming from the difference between the discounted purchase price and the full face value received at maturity; however, at a 100% market price with a 0% interest rate, its attractiveness as a yield-generating asset from this specific point of acquisition is null, making it primarily a principal preservation instrument or possibly a component of a more complex structured product. VTB Bank, the issuer, is Russia's second-largest financial group and a key player in the country's banking sector; majority-owned by the Russian state, it plays a strategic role in the national economy, providing a wide range of corporate, retail, and investment banking services, with its operations and financial standing intrinsically linked to Russia's economic and geopolitical landscape, including exposure to international sanctions. The bond's denomination in RUB and its issuance country, Russia, inherently expose investors to currency fluctuations and the broader sovereign and geopolitical risks associated with the Russian market, necessitating consideration of potential volatility in the Ruble and the implications of any further international sanctions or economic shifts impacting Russian entities and markets. In summary, this VTB Bank bond (ISIN: RU000A0NNM77) presents a unique profile: a relatively short-term, Ruble-denominated debt instrument from a state-backed Russian bank, currently trading at par but offering no explicit interest, whose financial appeal for an investor would therefore not be for income generation, but rather for specific portfolio balancing or, if acquired at a future discount, for capital appreciation at maturity, provided the issuer's creditworthiness and Russian market stability allow for principal repayment.