21.05.2021 – 12:53
The Russian Ministry of Finance has issued euro-dominated liabilities worth € 1.5 billion ($ 1.8 billion), marking the first international bond sale in 2021.
“Despite the expansion of anti-Russian sanctions this year, international investors still show sufficient interest in investing in Russian debt instruments.” she said.
The ministry sold € 1 billion in a new 15-year Eurobond with a yield of 2.65%, and another € 500 million in a 2027 Eurobond issue at 98.5% of its nominal prices, according to VTB Capital, which adjusted the deal. together with the main Russian banking groups Gazprombank and Sberbank.
Russian investors reportedly bought 47% of the 2036 bond, with 22% allocated to buyers in Germany and Austria, 14% in the Middle East and Asia, seven percent in the UK and six percent in France. Investors from Russia bought 65% of the 2027 issue, while investors from the Middle East and Asia bought 20%, and French investors bought 11%.
The deal comes a month after the US imposed sanctions on the sale of rubles in debt and ahead of a summit between President Vladimir Putin and US President Joe Biden scheduled for next month.
The latest round of anti-Russian sanctions bans direct purchases of sovereign debt denominated in Russian rubles from mid-June. The ban comes in addition to the existing restriction on the direct purchase of sovereign Eurobonds issued by the Russian government.
Earlier this week, Washington lifted sanctions on Nord Stream 2 AG and its German CEO Matthias Warnig, citing concerns about US national interests, although it blacklisted four ships and four units involved in the construction of the Russian pipeline. gas.
Existing sanctions targeting Russian bonds and the threat of further punitive measures by the White House have failed to deter foreign interest. Relatively high yields and low levels of government debt make Russian bonds attractive to foreigners. Non-residents are said to hold up to 54% of Russia’s Eurobonds, although the share of domestic bonds held by foreign investors fell from 35% last year to 19% last month.
Translated and adapted for Konica.al by RT
