Russia places USD 7bn in Eurobonds.

By bne IntelliNews March 30, 2012
After a week of unofficial reports on Russia's Eurobond issue, FinMin confirmed issuing 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 demand for the securities exceeded the amount proposed more than two fold, while FinMin Anton Siluanov commented that placement of 30-year bonds will become a new long-term guidance for long-term borrowings of Russian companies. Issue is organised by BNP Paribas, Citigroup, Deutsche Bank, Troyka Dialog and VTB Capital. Notably, with this Eurobond issue FinMin successfully covers all the planned foreign borrowings of USD 7bn for this year. According to FinMin, government's external debt as of January 1 2011 amounted to USD 35.8bn, decreasing by 10% y/y. Most of the debt accounted for Eurobonds borrowings that stood at USD 29.1bn, down by 4.2% y/y. According to preliminary estimates of CBR, gross external debt increased by USD 50bn or 10.2% y/y to USD 538.94bn as of January 1 2012. Out of that, government's debt amounted to USD 33.57bn (vs. USD 34.5bn a year ago), banking sector debt to USD 164bn (vs. USD 144bn) and debt of other sectors to USD 330bn (vs. 298bn).

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