UPDATE2: Source: Demand for Russia’s Eurobonds reaches $5.5 bln

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MOSCOW, May 23 (PRIME) -- The demand for Russia’s 10-year Eurobonds has amounted to about U.S. $5.5 billion so far, banking sources with knowledge of the situation told PRIME on Monday.

Russia’s Finance Ministry confirmed earlier in the day that it is placing a new Eurobond issue on the international market. “The issue is being placed in line with a program of foreign borrowings, in accordance with a law on this year’s budget,” the ministry said. The program stipulates borrowing of up to $3 billion abroad this year.

One of the sources said that the issuer still expects bids from Asian investors. Another source added that because of that the bid book may be closed on Tuesday instead of Monday. “There some administrative issues that must be solved,” the source said, adding that bids amounted to about $5.5 billion.

A banking source said earlier in the day the Finance Ministry is placing benchmark 10-year U.S. dollar-denominated Eurobonds with a yield guidance of 4.65–4.90%. “The attracted funds will not be used for goals violating the E.U. and the U.S. sanctions,” the source said. The deal was planned to be closed on Monday.

VTB Capital acts as the organizer.

VTB Bank’s CEO Andrei Kostin said earlier in May that Russia will manage to place Eurobonds without participation of foreign banks this year.

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