Ended on Tuesday placed 10-year Eurobonds. Of the planned $3 billion managed to post a $1.75 billion at the same Demand twice exceeded supply, and the volume of books amounted to about $7 billion, said the press service of the Ministry of Finance with reference to the head of Department Anton Siluanov. However, market participants suggested that the demand could be exaggerated, according to the newspaper “Vedomosti”. According to one of them, the company applied for large sums, and after its approval has been reduced.
A person close to one of the parties to the transaction, indicates that the primary demand in the end showed that American, European and Asian investors who bought the securities by $1.3 billion While investment bankers indicate that on Monday, foreigners were virtually absent in the order book. Their appearance is a participant in the bond market explained by the possible scheme, which was used by Russian foreigners. “Just three days left to surpass the money in the United States and to invest”, — he explained the fact that the order book was formed three days.
However, managing a large investment Fund reported on may 23 that the decision to close the book on may 24, was due to the desire to “VTB Capital” to wait for the opening exchanges in China and Singapore to attract investors from Asia. Also, the financier did not exclude that the accommodation to be able to connect quasi-public funds including from the Middle East.
In turn, the analyst of Raiffeisenbank Denis Poryvai said that Russia in this time was placed with a large premium, which sovereign borrowers such level, as a rule, should not be posted. “The Russian sovereign paper is always placed at the lower end of the benchmark yield, and now, for the first time above it”, — he said.
Russia has placed 10-year Eurobonds with a yield of 4.75% per annum. The Ministry of Finance has closed the bid book 24 may at 20:00 GMT, the sources said two of the investment companies participating in the placement.
In early February, the Ministry of Finance reported that he had sent requests to 25 foreign banks in the placement of sovereign Eurobonds. In particular, the queries received by Barclays, BNP Paribas, Bank of America Merrill Lynch, Bank of China, Wells Fargo, Goldman Sachs, JP Morgan and others. However, none of the foreign banks have not agreed to participate in the offering, citing the recommendations of the U.S. government and the European Union. However, as reported by “Vedomosti”, the Vice-President FK “Opening” Alexander Mansir, Europeans and Americans could purchase Russian securities via forward application.