Foreign Investors Buy 95% of Russian 30-Year Eurobonds

PHOTO by Maxim Blinov / RIA Novosti

Foreign investors became the main buyers of Russian Eurobonds issued on June 20, 2017. Investors showed the greatest demand for 30-year bonds – 95% of the volume has already been bought, according to the Russian Finance Minister Anton Siluanov.

The official stressed that the placement was successful "despite all the restrictions and sanctions." In general, about 85% of all eurobonds were bought by international investors and remaining 15% by the Russian entities.

On June 19, Russian Ministry of Finance began placing sovereign Eurobonds with a combined value of $3 billion: $2 billion in 30-year and $1 billion in 10-year bonds. The benchmark yield for the 10-year bonds is 4-4.5% and 30-year bonds is 5-5.5%. The placement was organized by VTB Capital Bank.

Earlier it was reported that Russia prepared 10 new projects for investors from the United States.

In March, Bloomberg wrote that political instability in the European Union increases the attractiveness of Russian Eurobonds.

In September 2016, Russia placed 10-year Eurobonds worth $1.25 billion dollars.