UPDATE: Finance Ministry choosing agent banks for 2020 Eurobond issue

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MOSCOW, Feb 10 (PRIME) -- Russia’s Finance Ministry is still choosing agent banks for a 2020 government Eurobond issue with the euro being the priority currency, Deputy Minister Sergei Storchak told reporters on Monday.

“We are only at the preparation stage, we are choosing consultants and agent banks. There is no final schedules,” he said, adding that the work may be finished sometime closer to May.

“As to the currency, (Finance Minister Anton Siluanov) has repeatedly said that in the current conditions the euro is a priority.”

The ministry also hopes that the interest of non-residents to Russia’s OFZ government bonds will persist and is in for no dramatic changes after the central bank’s announcement of its plans to soften the monetary policy.

“We still have a considerable margin, and I think interest to our market will be in place. We will watch demand and supply for OFZ (bonds) after last Friday’s decisions (of the central bank), the way they will influence the auctions. But I don’t expect any serious changes. The general trend of cheaper debt will persist, and we are happy about it,” he said.

“I don’t think there will be any dramatic changes. We still are an attractive market, stable and offering good debt ratios. The yields are very good for investors.”

On February 7, the central bank reduced the key interest rate for the sixth time in a row, by 0.25 percentage points to 6% annually, which is the lowest since March 2014. The regulator also said it may reduce the rate at its upcoming meetings.

Storchak also said that Russia and Belarus are holding consultations to adjust the terms of the credit for construction of the BelAES nuclear power plant.

“We are holding consultation on the issue. It is difficult and is linked to several independent issues. Prolongation of the credit’s period of use is a separate issue and adjustment of the repayment period is another separate issue,” he said.

“The colleagues also say that they would like to revise the interest rate, which was set long ago, in 2012 under other macroeconomic conditions. We always issue credits to our partners at interest rates that we set for ourselves, we don’t even have a country margin for the debtors.”

Belorusskaya AES, or BelAES, will consist of two units featuring VVER-1,200 reactors. The launch of the first unit is planned for January–March. The second unit may be launched in 2021.

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