World Economy

Russia Raises $1.75 Billion From Ten-Year Eurobonds

Russia Raises $1.75 Billion From Ten-Year EurobondsRussia Raises $1.75 Billion From Ten-Year Eurobonds

Russia’s Finance Ministry considers the Eurobond issue amounting to $1.75 billion sufficient now amid low demand for currency.

“We’ve floated and think that it is enough for now. The demand for currency is not very strong in the country. We don’t need foreign currency resources. The balance of payments is strong, gold and foreign exchange reserves are replenished so we’ve just been on the market,” Finance Minister Anton Siluanov said Wednesday, Tass reported.

Russia has successfully floated its 10-year Eurobonds worth $1.75 billion. The coupon yield rate is set at 4.75% per annum, the finance ministry said. The offer price of a single bond totaled 100% of its par value or $200,000, and 8,750 bonds were placed in total.

According to Siluanov, foreign investors bought over 70% of Russian Eurobonds. On Wednesday, the finance minister said that Russian commercial banks acquired sovereign Eurobonds of the Russian Federation amounting to around $550 million.

“We analyzed all bids and primarily selected foreign participants willing to invest in Russian securities. We fixed on raising a total of $1.75 billion, with foreign participants investing around $1.2 billion and Russian lenders, around $550 million,” Siluanov said. “The bid book amounted to about $7 billion,” the minister said. “The (offering) amount is $1.75 billion; the yield is 4.75% per annum,” he added.