On Monday, May 23, Russia announced the placement of Eurobonds in the international market. "The issue is carried out according to the program external borrowing in accordance with the law on the budget for the current year", - said in a statement the Ministry of Finance. The organizer appointed "VTB Capital." Bloomberg referring to the source reports that benchmark Eurobond yield is 4,65-4,9%.
RBC source close to the "VTB Capital," says that the order book can be closed on Monday. A source at one of the state banks do not rule out that "VTB Capital" can try to place the entire amount planned for this year, the Ministry of Finance Eurobonds - $ 3 billion, "The demand for foreign currency bonds of Russian issuers are now increased", -. He said.
In February 2016 the Ministry of Finance reported that he had sent 25 foreign banks, including Barclays, BNP Paribas, Bank of America Merrill Lynch, Goldman Sachs, JP Morgan, an application for organizing a possible placement of Eurobonds in 2016. After that, The Wall Street Journal and the Financial Times reported that the US and European authorities have given banks recommendation vozderzhatsI'm from the placement.
As RBC wrote an application to participate in the placement of Russian sovereign bonds filed one of the largest investment banks - Goldman Sachs. This happened even before the recommendation not to participate in the sales organization. As a result, the bank has started to look for a way to withdraw its application.
In March, EU officials have warned European banks from the placement of Russian Eurobonds, reported Financial Times, citing sources in the banks. Previously, the newspaper The Wall Street Journal wrote that the US authorities have warned major US banks to participate in the placement of Russian Eurobonds. Washington felt that it is contrary to the policy of sanctions against Moscow. Then edition reported that not all banks have decided on further action. According to a source publication, JPMorgan Chase was considering the application, but in the end the bank's management decided not to do so, and Bank of America Corp., Citigroup Inc., Morgan Stanley and Wells Fargo & Co. originally announced their refusal.
Bloomberg agency in mid-April reported that Russia will postpone placement of Eurobonds planned for this year because of US and EU sanctions, as well as the failures of banksto participate in the placement. According to agency sources, it is planned to attract $ 3 billion would cover a tenth part of the budget deficit this year. Cobesedniki publication stated that in recent months, the Russian authorities have considered a variety of ways that would bypass US restrictions and the EU, including accommodation in Swiss francs and yen. However, the official said, Moscow was unable to find a sufficient number of banks and investors who have expressed a desire to participate in the distribution under the conditions of fear because of the sanctions.
Finance Minister Anton Siluanov also acknowledged that Russia had difficulties with accommodation. "Yes, it really intrigues this issue, many banks refuse. However, the window of opportunities for ourselves, we do not close in this direction work ", - said the minister in early April. He noted that Russia wanted a "test the market, to participate in this market, so that investors have seen our presence there."
At the head of VTB Andrey Kostin he said last week that Russia will cope with the placement of Eurobonds in the current year bithout the participation of foreign banks. "I admit that VTB fully deploy. It is too early, "- he told reporters on May 20 in response to a question whether there is a variant of placing Russian Eurobonds without the participation of foreign banks (quoted by" RIA Novosti ").
The last time Russia was on the international markets in September 2013, when the paper sold at $ 6 billion, maturing in 2019, 2023 and 2043, respectively. Since then, she did not go to international capital markets due to Western sanctions imposed after the annexation of Crimea, which virtually shut down the external debt markets for the country.