UPDATE: Russian ministry confirms $1.25 bln Eurobond offering

(Rewrites headline, lede, adds details in second, last three paragraphs)

MOSCOW, Sep 22 (PRIME) -- Russia’s Finance Ministry has confirmed that it is offering U.S. $1.25 billion Eurobonds, a representative of the ministry told PRIME on Thursday.

“Yes, we confirm the fact of placement,” the representative said.

Earlier on Thursday, a banking source told PRIME that the 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.

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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