Russia may enter foreign markets with bonds denominated in U.S. dollars and Chinese yuan in 2016, Russian Finance Minister Anton Siluanov told journalists on Oct. 10.
"We might enter foreign markets, as a number of our companies are doing now. Let's see what demand for our bonds and the investors' interest are. If it proves acceptable, we will enter in a routine way, as it was done three years ago. We could also place [bonds] in currencies of our Asian partners so as to pay in these currencies in our trade with these Asian partners," he said.
Such proposals are being analyzed now, although no final decision has yet been made, Siluanov said. "But we don't rule out that we could enter the foreign market and borrow there next year," he said.
Asked currencies of what Asian countries he implied, Siluanov said, "We are focusing mainly on Chinese investors."
"Anyway, we will work with our Chinese partners and analyze these issues. If we see their interest, we are prepared to enter markets and borrow in yuan," he said.
"We will explain our financial policy and debt potential to our Asian partners and Western partners. Money on the domestic market will be the main borrowing source next year, but we are also exploring the possibility of entering external markets to get in aggregate up to 200 billion rubles. If there is no decision on external borrowings, the law entitles us to increase domestic borrowings," he said.
The draft budget for 2016 sets the ceiling of borrowings on external markets at $3 billion.
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