25 Nov 2010 15:15

Bids from 29 investors bring demand for Belarusian bonds to 9.95 bln rubles - Sberbank

MOSCOW. Nov 25 (Interfax) - Overall demand for Belarus's series-1 issue of 7 billion rubles worth of bonds, placement of which was slated for November 25, came to 9.95 billion rubles and bids were received from 29 investors, says a statement from Sberbank of Russia , one of the organizers of the placement.

The demand took shape at a coupon-yield rate of 8.75% per annum, in the middle of the announced yield guidance range. When the bid book for the bonds was opened November 10, first-coupon guidance was announced at 8.5%-9% p.a. Bids were being accepted until November 23.

"There are no new placement timeframes at this time, and issue has been moved back to an undetermined date," a Belarusian Finance Ministry representative told Interfax.

The Federal Financial Markets Service (FFMS) registered the prospectus November 9 and gave the go-ahead for Belarus to issue the series-1 bonds and an 8 billion-ruble series-2 in a public placement for public circulation in Russia.

The bonds in both series have a two-year maturity period and carry face value of 1,000 rubles.

In line with Belarusian President Alexander Lukashenko's order, the Finance Ministry is allowed to place up to 15 billion (Russian) rubles worth of bonds maturing in up to five years in the period 2010-2011.

Belarus tapped Sberbank of Russia, Gazprombank, Alfa Bank , and Vneshtorgbank back in December to organize the country's bond-placement in Russia. On December 31, these banks presented the Belarusian government with a 13-month bridge loan of 6 billion Russian rubles to be repaid with proceeds from the bond issue.

Belarus had state debt amounting to $9.559 billion on October 1, debt that had increased 21.1% since the beginning of the year.