The Russian Finance Ministry and lead managers of Russia's ruble-denominated Eurobond issue, JPMorgan, Deutsche Bank, HSBC, Renaissance Capital and VTB Capital, will hold the bonds' road-show in New York and London on Tuesday and Wednesday, Vedomosti business daily quoted a banking source close to lead managers as saying on Tuesday.
The source was quoted as saying that the issue volume would amount to 60-90 billion rubles, while the bonds would carry a maturity of no less than five years.
A source familiar with the matter earlier told RIA Novosti that the issue volume would amount to 80-100 billion rubles with a maturity of 3-10 years.
Deputy Finance Minister Dmitry Pankin has said that the ministry intends to place ruble-denominated Eurobonds with yields matching current rates for the ministry's OFZ domestic federal loan bonds. On Monday, OFZ bonds with maturity in 2015 traded at 7.3% per annum, while yields on OFZ bonds with different repayment periods ranged from 3.54% to 8.87%.
In April, Russia placed two tranches of sovereign Eurobonds after a more than ten-year pause. In particular, Russia placed $2 billion five-year bonds and $3.5 billion 10-year bonds. On Monday, the five-year bond yield amounted to 3.548%.
Russia's Alfa-Bank analyst Stanislav Bozhenko was quoted by Vedomosti business daily as saying that Russia's ruble Eurobonds would fetch good demand as Russia's sovereign rating was expected to be raised while European investors showed interest in ruble instruments. He also added that the bond issue price guidance could stand at 7%.
MOSCOW, November 30 (RIA Novosti)
