UPDATE3: Source: Demand for Russian Eurobonds exceeds $6 bln

(Provides new figures in headline, lede)

MOSCOW, Sep 22 (PRIME) -- Demand for Russia’s U.S. $1.25 billion Eurobonds has already exceeded $6 billion, a banking source told PRIME on Thursday.

“The bidding book exceeds $6 billion. Bids will be accepted until 4:30 p.m. Moscow time,” he said.

Earlier in the day, a banking source said that Russia’s Finance Ministry is offering up to $1.25 billion 10-year Eurobonds with the yield guidance of 3.99%. “The book is open. The deal should be closed today,” the source said. The settlements on the Eurobonds will be done through international system Euroclear and the National Settlement Depository, the source said. VTB Capital acts as the organizer of the deal.

Later, a representative of the ministry confirmed the Eurobond offering.

Economic Development Minister Alexei Ulyukayev told reporters that the Eurobond offering is not a substitution of privatization of large assets in 2016.

“These tracks are completely different. We have always said that the second stage of the bond placement falls under the $3 billion quota defined by our law. This is work as usual and in no way it is a substitution of decisions on privatization of large assets,” he said.

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

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