Russia to place USD 7bn Eurobonds.

By bne IntelliNews March 29, 2012
FinMin will place USD 7bn in three Eurobond issues, USD 2bn for 5 and 10 year tranche and USD 3bn for 30-year tranche, PRIME reports citing the banking sources. USD 7bn was the maximum amount set by FinMin for foreign borrowings this year. It is also reported that FinMin decreased the yield guidance to the lower band of the previously set range, with yield of the bonds to be tied to US T-Bills with respective maturities: UST +230bps for 5-year issue, UST+240bps for 10-year issue and UST+250bps for 30-year issue. Previously it was reported by PRIME that Eurobonds could yield UST +235bps, UST+265bps issue, and UST+265bps, respectively. At the same time Interfax reported that demand for the securities exceeded the amount proposed by almost 2.5-fold at USD 17bn. Issue is organised by BNP Paribas, Citigroup, Deutsche Bank, Troyka Dialog and VTB Capital. As announced by 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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