FinMin: Russia prepares RUB 60bn Eurobonds issue.

By bne IntelliNews February 1, 2011
As announced by the deputy FinMin Dmitry Pankin, Russia is preparing a RUB 60bn (USD 2bn) RUB-denominated Eurobond issue in the nearest future due to favourable conditions on the foreign debt market. Pankin added that ministrys goal was that Reserve Fund and National Welfare Fund remain untouched this year, while federal budget deficit is covered from foreign and domestic borrowings. To remind, it was previously announced that issue of RUB-denominated Eurobonds could be made in Q1/11 already. The amount of the issue was planned at RUB 30bn-RUB 80bn, with maturity of three to ten years, organised by local VTB Capital and Renaissance Capital together with J.P. Morgan, Deutsche Bank and HSBC. Previously FinMin also voiced its intention to issue EUR-denominated Eurobonds, as well as possibly thirty-year securities. Last year Russia issued USD 2bn worth of five-year Eurobonds yielding a coupon rate of 3.625% and USD 3.5bn worth of ten-year Eurobonds yielding a coupon rate of 5%. Governments external debt amounted to USD 34.43bn (up by 10% y/y), according to first estimates by CBR. This year foreign borrowings ceiling is set at USD 7bn. In December unofficial sources announced that FinMin started a road-show for RUB-denominated Eurobonds, but called it off shortly after and postponed until more favourable market conditions.

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