Russia places $1.25 bln Eurobonds at 106.75% of face value

MOSCOW, Sep 23 (PRIME) -- Russia’s Finance Ministry has placed U.S. $1.25 billion 10-year Eurobonds at a price of 106.75% of a face value and with a coupon of 4.75% annually, the ministry said in a statement late on Thursday.

Demand for the Eurobonds exceeded $7.5 billion. The technical placement is scheduled for September 27. VTB Capital acted as the placement’s organizer.

Finance Minister Anton Siluanov said the ministry was satisfied with the results of the placement and only foreigners purchased the issue, with U.S. investors buying 53% of the total amount, investors from Europe buying 43% and Asian investors acquiring 4%. The settlements on the Eurobonds will be done through international system Euroclear and the National Settlement Depository, he said.

“We saw huge interest from investors as the bidding book amounted to more than $7.5 billion, which exceeded the offering’s volume sixfold. About 200 investors from the U.S., the U.K., the continental part of Europe, Asia and Russia filed their bids,” he said.

As a result, the issue’s yield stood at 3.9% annually, which is 85 basis points less than the yield of the previous Eurobond placement carried out in May, he added.

In May, Russia placed $1.75 billion Eurobonds with a yield of 4.75% annually, while the total bidding book amount was about $7 billion.

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