24 Dec 2009 19:14

Govt specifies potential Eurobond organizers

MOSCOW. Dec 24 (Interfax) - The Russian government issued a resolution December 21 specifying those banks that might become organizers for Russian Eurobond issues in 2010-2012.

The list includes 22 investment banks. Four of them are Russian: VTB Capital, Sberbank of Russia , Troika Dialog , and Renaissance Capital.

Among the other banks are: ING, Barclays, BNP Paribas, Bank of America Merrill Lynch, Goldman Sachs, Daiwa Securities, JP Morgan, Deutsche Bank, Calyon, Credit Suisse, Morgan Stanley, Nomura, HSBC, UBS, and UniCredit.

The Finance Ministry will choose from among those eligible organizers every time it places an issue of Eurobonds in 2010-2012.

Russia will be technically ready to place Eurobonds by March 2010, Deputy Finance Minister Dmitry Pankin said. But technical preparedness does not mean the placement will begin immediately, he said.

The only specific number is the maximum level, $17.8 billion, but "we most likely won't reach" that figure, he said.

Deputy Prime Minister and Finance Minister Alexei Kudrin said Russia would still borrow abroad next year even with oil at $70 per barrel. The federal budget assumes oil at $58 in 2010.

The presence of the sovereign issuer on the market will support Russian corporate issues and make the next placement more liquid and advantageous, he said. In addition, it will provide a benchmark for borrowing, for private companies among others.

Russia last placed Eurobonds on the market in 1998. It issued Eurobonds to exchange for Soviet commercial debt in 2000.