Political threats did not prevent U.S. from buying Russian Eurobonds

A man walks in front of the skyscrapers of the International Business Center in Moscow.

A man walks in front of the skyscrapers of the International Business Center in Moscow.

Reuters
Finance minister: 'We still have our own business to push ahead with'

New sanctions introduced by the US against Russia did not influence on the decision of U.S. investors to buy Russian sovereign bonds, Finance Minister Anton Siluanov told TASS in an interview on June 26.

"Sanctions or no sanctions, we still have our own business to push ahead with. Incidentally, the political threats by no means dissuaded foreign investors, including U.S. ones, from buying our securities. This time the demand for our Eurobonds was twice the initial supply. Foreign investors accounted for 85 percent of the buys. It was a very successful placement," the minister said.

International borrowings are not the primary source of funding deficit of the Russian market, Siluanov said. "It is important to realize, though, that this borrowing is not the main source of funding the Russian budget’s deficit. And most certainly not an attempt to create a safety net. Under the program for domestic public borrowing this year the amount to be drawn is approximately ten times greater. We turned to foreign investors with a reminder of our presence on the foreign market so as not to lose contact with them," he added.

The Russian Finance Ministry floated two tranches of $3 billion worth sovereign Eurobonds mature in 10 and 30 years. The yield of 10-year bonds floated in the amount of 1 billion is 4.25 percent per annum. The yield of $2 billion worth 30-year Eurobonds is 5.25 percent per annum.

Read more: U.S. and Europe scoop up $1.25 billion in Russian bonds

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