Source: Russia cuts guidance for 2047 Eurobond to 5.25–5.375%

MOSCOW, Mar 16 (PRIME) -- The Finance Ministry has reduced the yield guidance for an additional issue of Russia’s 2047 Eurobonds to 5.25-5.375% from 5.5%, a banking source told PRIME on Friday.

The yield guidance for a new U.S. dollar-denominated 2029 Eurobonds remains at 4.75%.

Demand for both issues amounts to nearly $4.5 billion.

The funds will be used for the government’s general purposes and for a swap program for 2030 Eurobonds.

The ministry said earlier in March it will swap no more than U.S. $4 billion worth of sovereign Eurobonds that mature in 2030 for Eurobonds maturing in 2027 or 2047 or for new issues of Eurobonds. VTB Capital collected bids for the swap from March 7 through Thursday.

The price for bonds eligible to the swap operation, indicated in the bids, should not exceed 113.5% of the par amortization included. All bids will be satisfied on Friday at a unified price set by the ministry after analyzing the bid book. Prices for newly offered bonds will also be set on Friday.

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