Russia’s Finance Ministry considers the Eurobond issue amounting to $1.75 bln sufficient now amid low demand for currency.

“We’ve floated and think that it is enough for now. The demand for currency is not very strong in the country. We don’t need foreign currency resources. The balance of payments is strong, gold and foreign exchange reserves are replenished so we’ve just been on the market,” Finance Minister Anton Siluanov said Wednesday.

Russia has successfully floated its 10-year Eurobonds worth $1.75 bln. The coupon yield rate is set at 4.75% per annum, the Russian Finance Ministry said on Tuesday.

The offer price of a single bond totaled 100% of its par value or $200,000. 8,750 bonds were placed in total.

According to Finance Minister Anton Siluanov, foreign investors bought over 70% of Russian Eurobonds.

On Wednesday, the finance minister said that Russian commercial banks acquired sovereign Eurobonds of the Russian Federation amounting to around $550 mln.

“We analyzed all bids and primarily selected foreign participants willing to invest in Russian securities. We fixed on raising a total of $1.75 bln, with foreign participants investing around $1.2 bln and Russian lenders – around $550 mln,” Siluanov said.

“The bid book amounted to about $7 bln,” the minister said.

“The [offering] amount is $1.75 bln; the yield is 4.75% per annum,” he added.

The Russian Finance Ministry does not intend to use foreign banks and depositary services for placement of sovereign bonds in future.

“We hope that in the future we will find ways not to use foreign banks for placing our bonds and will use our own infrastructure on both domestic and foreign markets,” Siluanov said.