Russia could place between 30 bln and 80 bln rubles in Eurobonds, yield below OFZs
KENDZHU. Oct 22 (Interfax) - Russia could place between 30 billion and 80 billion rubles in ruble-based Eurobonds, Deputy Finance Minister Dmitry Pankin told journalists in Kendzhu, South Korea.
"With less than 30 billion rubles there is no sense in entering [the markets]. With over 80 billion rubles it would be quite difficult to make a placement. So, if [the placement is] in ruble, the figure is 30 billion-80 billion rubles," Pankin said.
Pankin stressed that a final decision on the framework of the possible issue has not been made. "We are now getting ready and preparing the issue's prospectus," he said.
The Eurobonds could be issued for a period of between three and 10 years. Pankin noted that the yield on the Eurobonds should be below that on federal loan bonds (OFZs).
The ministry is currently selected organizers for the Eurobonds issue. A source in financial issues earlier said that one of these organizers would likely be VTB Capital.
Russia placed $5.5 billion in Eurobonds in April. The sovereign Eurobonds were placed in two tranches: a five-year tranche worth $2 billion at 3.741% and a 10-year tranche worth $3.5 billion at 5.082%.
VTB Capital, Citi, Barclays and Credit Suisse were the issue's organizers.