Ministry says sells $2.5 bln Eurobonds exclusively to foreigners

MOSCOW, Jun 21 (PRIME) -- Only foreigners bought U.S. $2.5 billion of Russia’s reopened on Thursday, with the majority of buyers coming from the U.K., the Finance Ministry said in a statement following the placement.

The ministry sold $1.5 billion of 2029 Eurobonds at a yield of 3.95% and $1 billion of 2035 Eurobonds at a yield of 4.3%. More than half of investors in each Eurobond came from Britain, with the remaining parts split among investors from the U.S., the continental part of Europe, and Asia.

“Thus, both tranches were placed exclusively among foreign investors,” the ministry said.

Combined demand for the Eurobonds exceeded $7 billion, the ministry said, while Andrei Solovyov, head of the debt market department at the placement’s organizer VTB Capital, said that the bidding book was oversubscribed by more than three times. The ministry added that the oversubscription allowed the authority to cut the average yield of the Eurobonds in circulation and to expand the amount of foreign holders of Russia’s Eurobonds.

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