Russian state development bank VneshEkonomBank (VEB) has postponed the planned issue of USD 1bn-USD 1.5bn Eurobonds until the autumn due to unfavourable market conditions, deputy head of the bank Alexander Ivanov told the press. VEB planned to issue bonds with maturities of 10, 15, or 30 years. Ivanov commented that VEB did not want to place “at any price” and characterised the general environment as negative. The issue could be postponed not to compete with the planned issue of USD 7bn Russia’s sovereign Eurobonds.

VEB serves as main intermediary in government’s anti-crisis measures, in particular by distributing loans for refinancing foreign debt of Russian companies, distributing subordinated loans to banks, managing National Welfare Fund, Pension Fund and others.

VEB (rated Baa1/Stable by Moody’s, BBB+/Stable by S&P’s, and BBB/Stable by Fitch) currently has RUB 90bn worth of outstanding domestic bonds in seven issues, six USD-denominated Eurobonds worth USD 5.45bn, two issues worth EUR 1.5bn, and one issue worth CHF 500mn. Recently VEB placed a debut EUR 1.5bn Eurobond in two issues: 5-year securities worth EUR 1bn were placed at 195bpt to mid-swaps (3.035% coupon rate) and 10-year securities worth EUR 500mn at 215bps to mid-swaps (4.032% coupon rate). The initial yield guidance was brought down by 25ps for both issues, with demand for the issues more than doubling the proposed amount.

It was previously reported that VEB’s borrowings target for 2013 will remain at USD 8bn.