Foreign investors buy half of Russia's 15-year Eurobonds, 35% of additional issue of 2027 Eurobonds
MOSCOW. May 21 (Interfax) - Foreign investors bought a little more than 50% of Russia's euro-denominated 15-year Eurobonds, but only 35% of an additional placement of Eurobonds maturing in November 2027, data from VTB Capital, one of the coordinators of the placement, show.
Russia raised 1 billion euros at 2.65% with an issue of 15-year Eurobonds on Thursday, and also placed an additional 500 million euros worth of 2027 Eurobonds at a price of 98.5% of face value.
VTB Capital said the order book peaked at over 1.4 billion euros for the 15-year bonds and 700 million euros for the 2027 bonds. Overall orders for both bonds exceeded 100.
Investors from Russia bought 47% of the 15-year bonds; 22% were bought by investors from Germany/Austria; 14% from Asia and the Middle East; 7% from the UK; 6% from France; and 4% from elsewhere, VTB Capital debt capital market chief Andrei Solovyev told reporters.
Investors from Russia bought up 65% of the additional tranche of 2027 Eurobonds, whiel 20% went to investors from Asia and the Middle East, 11% from France and 4% from elsewhere, he said.
Based on these figures, the overall placement of 1.5 billion euros worth of bonds was split fairly evenly between foreign and Russian investors, at 47% to 53%, respectively.
The other coordinators of the deal were Gazprombank and Sber CIB.
"The additional placement of the circulating Russia-2027 Eurobonds and the issue of new Russia-2036 Eurobonds enabled the Finance Ministry to continue the formation of a liquid sovereign yield curve in euros," Gazprombank senior vice president Denis Shulakov told Interfax.
He remarked that the book build and placement happened the day after Foreign Minister Sergei Lavrov's meeting with U.S. Secretary of State Antony Blinken.
Investors such as sovereign wealth funds, which accounted for more than 5% of all orders, played a significant role in the deal, Shulakov said.
