Russia's VTB raises $1.5 bln in 10-yr Eurobond - source

MOSCOW, Oct 5 (Reuters) - VTB , Russia's No.2 lender, raised $1.5 billion in a 10-year Eurobond issue, pricing the deal at 6.95 percent yield, a banking source told Reuters on Friday.

VTB, which aims to use proceeds to support its Tier 2 capital ratio, was initially guiding at an yield of around 7.25 percent, narrowing it later on Thursday. �

Russian borrowers have raised over $37 billion via Eurobond issues so far this year, more than for the whole of last year, with investors' enthusiasm boosted by liquidity injections from the European Central Bank and the U.S. Federal Reserve. 

(Reporting by Katya Golubkova; Editing by Lidia Kelly)

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