Finance Ministry satisfied with profitability of Russian Eurobonds
Foreign investors bought around 85% of the Russian sovereign Eurobonds, Russian investors - 15%
MOSCOW, June 21. /TASS/. Foreign investors bought around 85% of the Russian sovereign Eurobonds, Russian investors - 15%, according to Russian Finance Minister Anton Siluanov.
"A great demand from foreigners, including those from America. I would like to say that around 85% were bought by foreigners, about 15% - by Russians," Siluanov said.
According to the Minister, 30-year Russian Eurobonds saw the highest demand, 95% of them were bought by foreign investors. "The biggest demand was seen for 30-year Eurobonds, 95% of them were bought by foreign investors," Siluanov said.
The Finance Ministry is generally satisfied with the profitability of the Russian Eurobonds. "I would like to say that we are satisfied with the profitability," the Minister said. "The yesterday's placement speaks in general of the success of this event, which went better than in previous years. This indicates that investors trust Russian securities," Siluanov added.
Siluanov added that reputable foreign investors and Russian banks are among investors that have shown interest in the country’s Eurobond issue. "Those are renowned investors, reputable foreign investors and our (Russian) banks," he said.
In addition, the Finance Ministry plans to conduct an exchange of Russian Eurobonds by fall. "The exchange will be held this year. I believe, closer to fall," Siluanov said.
A source in financial circles told TASS told earlier that the volume of the new Finance Ministry’s 10-year Russian Eurobond issue will reach $1 bln, 30-year issue - $2 bln.
The Russian Finance Ministry began placement on Monday, June 19. All settlements will be held on June 23 through the National Settlement Depository and Euroclear. The only organizer of the placement is VTB Capital.
The volume of external loans of the Russian Federation in 2017 is set at $7 bln ($3 bln due from the placement of Eurobonds and $4 bln from the exchange of previously issued bonds).
In 2016 Russia has twice successfully placed Eurobonds - in May for $1.75 bln, in September - $1.25 bln (both issues with redemption in 2026). The market yield of the first issue in May reached 4.75% per annum. In September 2016, a significant volume of demand allowed to raise the originally announced sales price from 106% to 106.75% of the nominal value. As a result, the market yield of the issue was 3.9% per annum, which is 85 basis points below the corresponding indicator of the main issue placed in May 2016.