15 Apr 2010 16:20

Russian govt. confirms size of 2010 eurobond issue, general terms

MOSCOW. April 15 (Interfax) - The Russian government set on April 8 an upper limit for its 2010 loan bond issue of up to $17.8 billion, and confirmed the general terms for the issue and circulation of Russian eurobonds.

The general terms provide that the bonds, to issued by the Finance Ministry, will consists of separate issues internally equal as to the rights they confer. They may be held by Russian and non-Russian legal entities and private investors.

The bonds may be middle-term and long-term, they will be named certificate bonds and will be stored centrally.

The issues will be in the form of global certificates put into depositories determined by the Finance Ministry.

The bonds may be subject to early redemption in cases determined by the conditions of their issue and circulation.

A road show for sovereign Russian eurobonds kicked off on April 13. The first meetings with investors were in Frankfurt am Main and Munich, then the road show moved to London and Singapore on April 14, and it is continuing in Hong Kong. U.S. investors will be able to familiarize themselves with the placement and circulation terms in Boston on April 16, in Los Angeles on April 19, in San Francisco on April 20 and in New York on April 21.

The joint lead organizers and book-runners are Barclays Capital, Citi, Credit Suisse and VTB Capital. The placement will be conducted in accordance with Rule 144A/RegS.

Deputy Prime Minister Alexei Kudrin, who is also the country's finance minister, said recently that said that the first tranche for the Eurobonds would most likely be placed in dollars followed by tranches in other currencies. He did not specify the details of the first and subsequent tranches only saying that this would hinge on the market and recommendations from consultants. Kudrin said that the placement could start "at any moment after the close of the road show."