Russia may place USD 7bn sovereign Eurobond on July 15.

By bne IntelliNews June 17, 2013

Russia may place USD 7bn worth of sovereign Eurobonds on July 15, PRIME reports citing unnamed sources. The planned amount fully covers the external borrowing scheduled for this year. The book for the issue is reportedly going to open on July 8. A road show is not going to be held. Key investors will be met in London and New York between July 8 and July 15.

The finance minister Anton Siluanov has previously told the press that Deutsche Bank, Barclays, Royal Bank of Scotland, and domestic VTB Capital, GazpromBank, and Renaissance Capital were picked as the organisers of the sovereign Eurobond issue. Citibank was appointed as a financial agent of the deal. Siluanov added that there was no rush for the issue and that the ministry is waiting for a window at the market. Last month Siluanov announced that Russia might place sovereign Eurobonds in June.

We remind that in March 2012, Russia issued USD 2bn worth of 5-year bonds at coupon rate of 3.25%, USD 2bn worth of 10-year Eurobonds at a rate of 4.5% and USD 3bn worth of 30-year bonds at a rate of 5.625%.

The government's external debt amounted to USD 49.84bn as of May 1, 2013, inching up 0.06% m/m and declining by 1.8% ytd. In EUR terms, the external debt went down by 1.9% m/m and 0.5% ytd to EUR 38.14bn. Eurobonds accounted for the largest part of the debt - USD 34.27bn.

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