Russia To Place $2.5Bln Worth Of Eurobonds, Demand Reaches $7Bln - Source

The Russian Finance Ministry will place additional issues of sovereign dollar-denominated Eurobonds maturing in 2029 in the amount of $1.5 billion with a yield of 3.95 percent per annum, and of Eurobonds maturing in 2035 in the amount of $1 billion with a yield of 4.3 percent per annum, a financial source told Sputnik on Thursday

MOSCOW (UrduPoint News / Sputnik - 20th June, 2019) The Russian Finance Ministry will place additional issues of sovereign dollar-denominated Eurobonds maturing in 2029 in the amount of $1.5 billion with a yield of 3.95 percent per annum, and of Eurobonds maturing in 2035 in the amount of $1 billion with a yield of 4.3 percent per annum, a financial source told Sputnik on Thursday.

The ministry is placing Eurobonds on Thursday. The initial benchmark yield was about 4 percent per annum and about 4.45 percent per annum, respectively. During the collection of applications, the benchmark yield for Eurobonds-2029 was reduced to 3.95-4 percent per annum, for Eurobonds-2035 - to 4.35-4.4 percent per annum. The organizers of the placement are VTB Capital and Gazprombank.

According to the source, investors' demand amounted to about $7 billion at the time of closing the bid book.

The ministry initially placed $1.5 billion worth of Eurobonds maturing in 2029 with a yield of 4.375 percent per annum in March 2018. In March this year, it placed $3 billion worth of Eurobonds maturing in 2035 with a yield of 5.1 percent per annum. Also in March, the finance ministry conducted an additional placement of Eurobonds maturing in 2025, attracting 750 million Euros at a yield of 2.375 percent per annum.

Earlier in June, Russian First Deputy Prime Minister and Finance Minister Anton Siluanov told reporters that the ministry was considering a possibility of another placement in 2019 if conditions are favorable.