MOSCOW (Sputnik) — The placement of new issues of Russian Eurobonds on the international market has been officially closed, the Russian Finance Ministry said Friday.
"The Russian Finance Ministry informs on the completion of settlements (closing of the deal) for new issues of external bond loans of the Russian Federation mature in 10 and 30 years in the amount of $1 billion and $2 billion, respectively," the ministry said in a statement.
The total volume of Russia's external borrowings program for 2017 was $7 billion, including $3 billion for new loans, and $4 billion for new issues replacing old loans. Russian Finance Minister Anton Siluanov said that the exchange operation could be implemented closer to the fall.
"Despite the increased market volatility, caused both by reports about the expansion of sanctions by the US authorities against Russia, and by a significant decrease in the price of oil and the ruble exchange rate, investors from various regions of the world demonstrated a steady and solid demand for new Russian bonds," the ministry said.
The total volume of the bid book amounted to $6.6 billion, exceeding the volume of placement more than twice. Bids were received from more than 200 investors. In the total volume of placed bonds, the share of investors from the United States was 32 percent, UK's investors — 31 percent, continental Europe — 15 percent, Asia — 14 percent. Funds and asset management companies purchased 60 percent of the issue, banks — 24 percent, insurance companies — 16 percent.
