OREANDA-NEWS. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ made a debut Eurobond issue denominated in euros. Two tranches were raised:
* a 5-year tranche worth 1 billion euros at a coupon rate of 3.035% (195 basis points in addition to mid-market swap rate);
* a 10-year tranche worth 500 million euros at a coupon rate of 4.032% (215 basis points in addition to mid-market swap rate);

The organizers of the bond issue were Barclays, Commerzbank, ING и Societe Generale.

Investors’ bids with regard to the 5-year bond issue exceeded more than 3 times the initially offered volume, with regard the 10-year bond issue – more than 2 times.

Both bond issues are noted for wide diversification in terms of investors’ type and regional distribution.

According to Deputy Chairman, Board Member Alexandr Ivanov this Eurobond issue is debut for Vnesheconombank. “A marketing strategy chosen by VEB made it possible to complete the bond placement setting coupon rates with regard to Series7 and 8 at substantially lower rates than the initially announced benchmark. The 5-year and 10-year bond issues made it possible to set bench marks on Vnesheconombank’s yield curve for further placements in this currency,” he said.

“The Eurobond issue was in great demand among foreign investors. We have a very high opinion of the international investment community’s trust and confirm that developing and promoting long-term cooperation with investors remains to be one of Vnesheconombank’s priorities,” he stressed

The funds raised as a result of the Eurobonds placement will be used to fund top-priority projects of the Bank for Development.