The demand for Eurobonds of Russia’s five times oversubscribed – media

Спрос на евробонды России в пять раз превысил предложение - СМИ

Moscow wants to attract Asian investors.

The volume of applications for a ten-year sovereign Eurobonds of Russia was much higher than the planned size of embed. It is reported by RBC with reference to sources in the investment companies participating in the purchase.

“The oversubscription amounted to $5.5 billion, while the organizers wanted to place at least $1 billion,” – said one of interlocutors familiar with the situation from the organizer of the placement is VTB Capital.

A source in one of the state banks said the order book was close already in the middle of the day, but, in his opinion, Russia’s Finance Ministry wants to expand the circle of bondholders.

Managing a large investment Fund said VTB Capital wants to attract investors from Asia, so the book is scheduled to close, when China and Singapore will open the exchange.

The last time Russia issued government bonds in 2013 in the amount of 11.4 billion dollars. By the end of 2015 securities offered investors for 21.1 percent of the profits.

On 23 may, Russia announced plans to place the issue of ten-year sovereign Eurobonds, nominated in US dollars.

On 15 March it became known that the European Union has urged banks to refrain from placement of Russian government bonds in support of sanctions against Russia.

Then it was noted if the European banks refuse Russian bonds, then Moscow will be forced to abandon its first attempt to enter the capital markets after the annexation of Crimea.

Russian government bonds also declined and American big banks Citigroup, Bank of America, JP Morgan Chase, Goldman Sachs, Morgan Stanley and Wells Fargo.

In late February, the Wall Street Journal wrote that the us government has recommended some major US banks to buy government bonds of Russia.

In the state Department and the US Treasury saying that buying bonds would be contrary to the principles of the sanctions policy.