Scandal and money: Americans and the British are buying up Russian debts

The demand for new Russian Eurobonds almost doubled the supply - 7 billion dollars against 4 billion dollars. In placement, a large proportion fell to investors from Britain and the US, despite the negative information background, the Finance Ministry said.
19.03.2018
Forbes
Origin source
The volume of applications for the purchase of new Russian Eurobonds from investors from the US, UK, continental Europe and Asia exceeded $ 7 billion, despite the unfavorable information fund for Russia, Anton Siluanov, the head of the Ministry of Finance, said through the press service. Despite the increased demand, the Finance Ministry decided to limit its placement to $ 4 billion.

On Friday, March 16, the Finance Ministry said that it placed two issues of Eurobonds: a redemption issue in 2029 at $ 1.5 billion at 4,625% per annum and an issue with redemption in 2047 for $ 2.5 billion at 5.25% per annum. The price of placement of one bond in the first case was 97.863% of the face value, in the second - 99.991% of the face value, the Ministry of Finance said. The organizer of the issue was VTB Capital.

Investors from Britain bought out 49% of the additional issue of sovereign Eurobonds Russia-2047 and 22% of the Russia-2029 issue, RBC reports referring to the statement of the head of the debt capital markets, VTB Capital, Andrey Solovyov. In aggregate, the British invested $ 1.546 billion in new Russian securities.

Investors from the United States bought 20% of the Russia-2047 issue, 13% - Russian investors, 3% - Asian and 14% of the issue - investors from other regions. As for the issue "Russia-2029", it accounted for 35% of Russian investors, 34% - American investors and 9% of investors from other regions, cites data from VTB Capital of RBC.

The funds raised from the placement of new bonds "Russia-2029" and "Russia-2047" in the amount of $ 3.2 billion will be used to repurchase bonds "Russia-2030".

As noted Siluanov, the Finance Ministry does not exclude the possibility of access to international capital markets during 2018 with debt instruments of other terms, and, possibly, currencies. He noted that the peculiarity of this placement was the preservation of demand for Russian debts of American investors, as well as the participation of Russian retail investors, which accounted for 5% of the volume of placement.

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