Russia Drops $3 Bln 30-Yr Eurobond Yield Guideline

Russia’s Finance Ministry has cut the yield guidelines for 30-year state Eurobonds worth of total $3 billion to their lower boundary, a banking source told Prime news agency on Wednesday.

Yield guidance for the 30-year state Eurobond was set at plus 250 basis points over U.S. Treasuries. As for other tranches, five-year Eurobonds worth $2 billion were set at plus 230 basis points over UST and 10-year paper at plus 240 basis points over UST.

Russia’s 2012 federal budget projects $7 billion in external borrowing. In 2010, Russia placed Eurobonds worth $5.5 billion for the first time after a 12-year gap. The Eurobond issue two years ago was heavily oversubscribed.

Last year Russia placed ruble Eurobonds worth 90 billion rubles ($3.103 billion).

 

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