Russia could place 5-, 10-, 30- Eurobonds at 235, 245, 265 b.p. against UST - sources
MOSCOW. March 27 (Interfax) - Russia could place five-year Eurobonds at a spread of 235 basis points against US Treasuries (UST) with the same maturity, ten-year bonds at 245 b.p. and 30-year bonds at around 265 b.p., financial market sources told Interfax.
Yield on five-year UST is currently 1.079%, 10-2.250% and 30-year - 3.341%.
In other words, yield guidance is 3.429% on the five-year Russian bonds, 4.7% on the ten-year bonds and 5.991% on the 30-year bonds.
The size of the tranches is not yet known.
The road show, which began on March 19, is due to end today, with pricing expected in the middle of the week. BNP Paribas, Citigroup, Deutsche Bank, Troika Dialog and VTB Capital are organizing.
The Financial Times late Monday quoted unnamed bankers as saying Russia might use the whole bond limit of $7 billion set down by the 2012 budget.
Deputy Finance Minister Sergei Storchak said in February that the whole amount might be placed at once, or split into two or more deals. The Finance Ministry has not commented further, saying only that the market situation is fair at present.
If Russia does place the whole $7 billion, it would be the biggest emerging market bond issue since December, when Industrial & Commercial Bank of China sold the equivalent of $7.8 billion in yen bonds, the FT said.
