Russian Finance Ministry sees investor interest in OFZ in yuan, allows for new placements in future - minister

MOSCOW. Nov 18 (Interfax) - Investors have shown interest in federal loan bonds (OFZ) in yuan, the placement of which is scheduled for early December, Finance Minister Anton Siluanov said.

"We have met with investors and see interest in this kind of instrument. In any case, this kind of innovation, I think, will be of interest to certain investors," Siluanov said, recalling that the Finance Ministry has not offered foreign currency bonds for a long time.

"We will issue securities from three to seven years, and with the right to choose what to redeem these securities in - rubles or yuan," he said.

Siluanov allowed for the possibility that OFZ in yuan could become one of the permanent borrowing instruments for the Finance Ministry in the future. "I do not rule it out," he said when replying to a corresponding question.

Last week, the Finance Ministry officially announced plans for the placement of Russian government securities denominated in yuan. It was reported that two debut issues of yuan-denominated OFZ with a fixed coupon income and maturities from three to seven years and a coupon period of 182 days would be offered. The face value of one bond is 10,000 yuan.

The book-building will take place on December 2 via the book-builder of the Moscow Exchange . The placement amounts and coupon income rates for the issues will be determined based on the results of the book-building. The technical placement of the bonds is scheduled for December 8.

The acquisition of the bonds and receipt of payments on them will be available in yuan or in Russian rubles at the investor's choice.

The Finance Ministry has considered various options for placing sovereign bonds in yuan for around ten years. Such plans were first announced in late 2015, but since then they have been regularly postponed.