Investors From the US and Britain Bought More than 70% of New Eurobonds in Russia
OREANDA-NEWS Russia has held the "largest one-time placement" of Eurobonds since the sanctions were imposed in 2014, selling $3 billion in dollar securities and €750 million in Euro bonds, first Deputy Prime Minister and Finance Minister Anton Siluanov told reporters today. "Neither the sanctions nor the hostile rhetoric of the West have undermined the confidence of investors in our assets," he said.
Siluanov revealed the geographical structure of investments in both issues:
- investors from the UK bought 55% of the issue in dollars and 40% of the issue in euros;
- US investors purchased 21% of the issue in dollars and 17% of the issue in euros;
- investors from continental Europe bought 8% of the issue in dollars and 18% of the issue in euros.
Thus, the sum of the two issues (with the conversion of attracted euros into dollars at the current rate):
- British investors bought almost 52% of all securities in the amount of about $2 billion;
- US investors bought 20% of the Eurobonds in the amount of approximately $774 million;
- European investors bought a little more than 10% of securities in the amount of about $ 393 million.
About $ 330 million of the dollar issue was bought by Russian investors, Siluanov said. He did not disclose how many securities in euros were bought by residents.
The volume of investors' applications for the purchase of dollar instruments exceeded the volume of placement more than twice, the demand for securities in euros four times exceeded the volume of placement, the first Deputy Prime Minister said.
"Taking into account the favorable market conditions, the Ministry of Finance raised funds in excess of the budget limit, which implies a corresponding reduction in the attraction of funds in the domestic capital market," Siluanov also said. The law on the budget provided for the attraction of foreign loans in the amount of up to $3 billion.