Page 54 - RusRPTJul19

6.1.3 Budget dynamics - govt funding plans
Russia raised $2.5bn selling dollar-denominated Eurobonds maturing in 2029 and 2035 on June 20, the finance ministry said. The sale of Eurobonds maturing in 2029 with a yield of 3.95% raised $1.5bn while the 2035 Eurobond, with a yield of 4.3%, raised $1bn, the ministry said in a statement. The initial benchmark yield on the 2029 Eurobonds was around 4% and about 4.45% for the 2035 Eurobonds, the ministry said. Finance Minister Anton Siluanov said this month that current market conditions were highly favourable for a placement of Russian sovereign Eurobonds. Russia tapped the global bond market in March, raising $3bn in a new dollar-denominated Eurobond and 750mn euros in a top-up issue of an existing euro-denominated Eurobond. The sale's organizers were VTB Capital and Gazprombank.
Russia plans to increase the emission of the Ministry of Finance OFZ treasury bills this year by about 40% compared with 2018 to RUB1.55 trillion Deputy Finance Minister Vladimir Kolychev said on June 14. Foreign investors are less afraid of the risks associated with US sanctions, while Russia has adapted to them and is ready to respond quickly, changing the volume of emissions, the minister said in an interview with the Financial Times. Demand for foreigners on OFZs has risen sharply, despite plans by the US Congress to ban them from buying Russian debt, which allowed Russia to place bonds in May of RUB375bn, Kolychev said. A month earlier, the issue amounted to a record RUB400bn. “Uncertainties have become less, and living with [sanctions] risks is easier,” he said. When risks appear, investors need to calculate them and possible consequences while this is done, it is difficult to invest, but “now, apparently, this process has naturally come to an end,” the deputy minister said. Ministry of Finance may reduce the sale of OFZ in the
54 RUSSIA Country Report July 2019 www.intellinews.com