31 Jul 2019 12:04

Demand for Belarusian bonds tops 45 bln Russian rubles

MOSCOW. July 30 (Interfax) - The book of demand for 10 billion rubles in Belarusian sovereign bonds is oversubscribed at more 45 billion rubles, Gazprombank , one of the placement's organizers, told Interfax.

Overall, 60 requests were filed, including from foreign investors, with demand from individuals totaled 1.5 billion rubles.

"The placement has set up market guidance in the Russian market in Russian rubles both for further placement of Belarusian bonds and for possible placement of other foreign sovereign and corporate issuers, including from Belarus," the Russian lender said, commenting on the book building.

The spread of Belarusian bonds to the OFZ sovereign yield curve is 185 basis points, whereas before, guidance had indicated "a premium of not more than 250 bps."

"This deal is an example of mutual trust: Belarus as a sovereign issuer in the infrastructure of the Russian market and its rules, on the one hand, and Russian investors in Belarus as a borrower, on the other. This is a genuine financial breakthrough," Gazprombank First Vice President Denis Shulakov told Interfax.

Book-building took place on Tuesday, July 30 from 11:00 a.m. to 15:00 p.m. Moscow time. The rate for the first coupon of the 3 and 4 series of sovereign bonds is 8.65% per annum.

The rate is fixed for the whole timeframe of the bond. The rate corresponds to yield at maturity in 3 years of 8.84% per annum.

In the process of marketing the issue, the guidance for the first coupon was reduced twice from its initial 9.10%-9.35% per annum.

Gazprombank , Otkritiye Bank and Sovcombank are the organizers of the placement. The Eurasian Development Bank is a co-organizer. Gazprombank is the placement agent. Two issues are planned - the 3 and 4 series - with nominal value of 5 bln rubles each maturing in three years.

Technical placement is due on August 7.