Government is thinking about new loans abroad


This information was confirmed by a source in the economic block of the government, which said that “talk about going, but neither the terms nor the offering yet. “It all depends on several factors — how to turn oil prices continue to fall the profitability of bonds. Until there is investor demand and, of course, there is a temptation to take advantage of it,” added the official.

“No news yet, we are not ruling out all options in the debt market”, — said the Deputy Minister of Finance Maxim Oreshkin.

According to the plans of the Ministry of Finance in 2016, the country can borrow abroad $3 billion In may, the Agency managed to place a ten-year Eurobonds for $1.75 billion under 4.75% per annum. The organizer of the placement were VTB Capital” — “a daughter” VTB. As reported the press service of the Ministry of Finance, investor demand for the bonds exceeded supply by several times and reached $7 billion, More than 70% of the securities bought by foreign investors.

After that, the Minister of Finance Anton Siluanov, speaking at the St. Petersburg international economic forum, said that Russia is not interested in attracting external borrowing to Finance the budget deficit. “We do foreign currency borrowing is not needed, we need rubles,” — he explained.

In early August the Minister of economic development Alexei Ulyukayev said that the state could attract new foreign currency debts, without waiting for the next year. “In the foreign market there are risk appetite, and the $1.25 billion can be taken, — quotes the Minister “RIA Novosti”. The speaker also expressed the view that “investors are interested in investing in Russian assets.”

On 16 August, the possibility to carry out a new placement of sovereign Eurobonds was also declared by the Director of the Department of state debt and financial assets of the Ministry of Finance Konstantin vyshkovsky. He said that the decision will be made in autumn depending on the market situation.

“If the decision on placement of sovereign Eurobonds will be taken, the Finance Ministry has all chances to borrow at a lower rate. Now the issue “Russia-2026 traded at a price of 106% of par, which corresponds to a yield of 4% per annum,” says a banker from a major Bank. However, according to him, the Ministry of Finance should hurry: the most suitable time for the issue of Eurobonds in September-first half of November, then investors start to leave on new year holidays and their activity drops sharply. “Besides, there is a risk that the fed at the end of the year can still go for a rate increase and it will delay part of the liquidity from emerging markets,” added the banker.

Discussing government plans for new borrowing comes amid growing risks that to meet the planned budget deficit of 3% may not work. The authorities planned that the Treasury may receive more than 300 billion through the privatization of 50,1% of shares of “Bashneft”, but on Monday, August 16, the press Secretary of Prime Minister Dmitry Medvedev Natalya Timakova reported about the postponement of the placement of the oil company. Later, Deputy Prime Minister Igor Shuvalov said that the deal could take place after it is privatized a 19.5% stake in Rosneft. Conditions of placement of shares of the Corporation’s investment consultants and “Rosneftegaz” should be submitted by September, however, even the officials themselves are not sure that the deal really takes place. In early August, Alexei Ulyukayev said there was a risk not to have time to sell “Rosneft” this year.

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