“No, that’s absolutely not true,” said the head of VTB Andrey Kostin in an interview , when asked to comment on the rumors and that sovereign Eurobonds were bought by foreign subsidiaries of the state Bank.
“It was an absolutely fair deal, and demand from foreign investors would be even greater if such a policy is not direct pressure from the political structures. To get a coupon of 4.75% in dollars in the conditions when in the world are bonds with negative yields, this is a great investor happiness,” — said Kostin.
According to him, the volume of foreign applications decreased dramatically after Euroclear refused to participate because “many investment funds are unable to invest differently.” Kostin said that VTB Capital”, as the organizer of placing has been forced to reject the requests of its clients and major Russian banks, because the Finance Ministry wanted to attract funds from foreign investors.
“It was a very large application, that is, to sell $3-5 billion is quite possible. But the Finance Ministry wanted to attract funding from external investors, i.e. those that the Russian market would not otherwise get. But this does not mean that some Russian company could not go through their offshore companies,” he said.
Earlier Kostin has denied the information about the “doot” the demand for Eurobonds of the Ministry of Finance. “The newspaper “Vedomosti” wrote that the demand was exaggerated. But either they have the wrong information — they need to check the sources, or they don’t know what to write”, — said the banker told in an interview to “Vesti. Economy.” He noted that a situation when due to high competition investors apply for more money than they plan to spend, happen always. “If the whole talk about a good location, it is always when a great demand and investors expect that there will be competition, of course, they apply “higher” to anything went — so I always do”, — said Kostin.
According to Kostin, the demand for new Russian Eurobonds proved to be “very great.” “We have already felt it — we have broken phones,” he said. The geography of demand — the US, UK, continental Europe, Asia and Russia, said Costin. But the government immediately pointed the organizer of the placement is VTB Capital” — that the Russian participants should be no more than one-third, he said. As a result, only 25% of the issue bought by Russian investors, the rest foreign.
On 24 may, the Ministry of Finance has closed the bid book. The Ministry reported that the volume of securities sold was $1.75 billion, the rate of return is 4.75% per annum, the total amount of the order book is about $7 billion About $1.2 billion bought by foreign participants, about $550 million to Russian banks, said Finance Minister Anton Siluanov.