The volume of applications for Russia’s 10-year sovereign Eurobonds has already reached $3 bln, a source in investment banking circles told TASS.
Bank Uralsib has decided to participate in placement of 10-year sovereign Russian Eurobonds.
“We are participating on RF26 additional placement. The decision on volume will be made in the process of placement, depending on the price,” the bank’s press-service said.
Price of Russian Eurobonds grows amid reports on additional placement
The price of Russian Eurobonds maturing in May 2026 rose by 37.5 base points up to 107.25% of its nominal value, their yield fell by 4.5 base points to 3.844%.
In addition, the price of Russian Eurobonds maturing in April 2042 rose by 1.96 base points to 117.305% of the nominal value; yield fell by 13.5 base points to 4.48%.
Russia’s Eurobonds are growing against rising oil price. Thus, the price of Brent crude oil futures contract with November delivery on London’s ICE rose by 0.94% to $47.27 per barrel.
Additional placement of Eurobonds for $1.25 bln
The Russian Finance Ministry on Thursday confirmed additional placement of Eurobonds for $1.25 bln maturing in 2026.
In May of this year, the Finance Ministry for the first time since 2013 has placed the first tranche of sovereign Eurobonds. As a result, the volume of the sold securities amounted to $1.75 bln with demand for $7 bln.
The Finance Ministry noted at the time, that more than 140 investors applied for purchasing new Russian Eurobonds, 55% of them are banks.
According to the Finance Ministry the main part of the issue (75%) was bought out by foreign investors from the UK, France, Switzerland, Asia and the US. The share of Russian banks, asset management companies and organizations that provide brokerage services, accounted for 25%.
New national infrastructure-based offering structure was tested during placement of Russian Eurobonds, the Finance Ministry said. Nevertheless, the Ministry will continue to work with Euroclear and Clearstream.
“New national infrastructure-based offering structure was tested during placement of Russian Eurobonds. The Russian Ministry of Finance will continue active cooperation with Euroclear and Clearstream in order to complete the procedures for the conformity assessment of the new issue with the requirements to allow unhindered secondary circulation of bonds through these international clearing systems,” the Ministry said.
On May 24, Russia’s Finance Ministry placed sovereign Eurobonds, first time since 2013. Securities for $1.75 bln in total were sold, while the demand was at $7 bln.
VTB Capital was selected as a sole organizer of the placement.