The second stage of Russia’s bond issuance has been planned and is not replacing privatization, Economic Development Minister Aleksey Ulyukayev said.
“Those are absolutely different tracks, we’ve always said that the second stage of bond issuance means exhaustion of the $3 billion quota”, he said, adding that “it does not replace the decision on privatization of big assets”.
The Russian Finance Ministry confirmed additional placement of Eurobonds for $1.25 billion maturing in 2026.
The additional issue of Eurobonds maturing in 2026 will amount to $1.25 billion. VTB Capital once again is acting as a placement agent.
In May the Finance Ministry has placed the first tranche of sovereign Eurobonds for the first time since 2013. As a result, the volume of the sold securities amounted to $1.75 billion with demand for $7 billion.
The Finance Ministry noted at the time, that more than 140 investors applied for purchasing new Russian Eurobonds, 55% of them were banks.
According to the Finance Ministry the main part of the issue (75%) was bought out by foreign investors from the UK, France, Switzerland, Asia and the US. The share of Russian banks, asset management companies and organizations that provide brokerage services accounted for 25%.
“New national infrastructure-based offering structure was tested during placement of Russian Eurobonds. The Russian Ministry of Finance will continue active cooperation with Euroclear and Clearstream in order to complete the procedures for the conformity assessment of the new issue with the requirements to allow unhindered secondary circulation of bonds through these international clearing systems”, the Ministry said. (TASS/Business World Magazine)