Russia prepares to tap global debt market with two euro-denominated Eurobonds

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Adds eurobond issuance details, background

MOSCOW, November 10 (Reuters)Russia places two euro-denominated sovereign eurobonds, a financial market source said on Tuesday, after the finance ministry said it had chosen three state-owned banks as organizers of a first eurobond issue this year.

Russia plans to issue one Eurobond with a term of seven years and the other with a term of 10 or 12 years, the market source said.

Russia is tapping into the global debt market for the first time since 2019 as its previous plans to raise $3 billion in Eurobonds this year were first thwarted by the COVID-19 pandemic and then by risks increased Western sanctions, prompting Moscow to focus on home borrowing.

The Finance Ministry said on Tuesday that it had chosen state-owned companies VTB Capital, Gazprombank and Sberbank CIB as organizers of the Eurobond.

Finance Minister Anton Siluanov said last month that Russia was considering a euro-denominated eurobond before the end of the year, stressing that the potential sale would depend on the outcome and consequences for Moscow of the presidential election. American.

Russian markets and the ruble hailed Joe Biden’s victory, with the Russian currency posting its biggest one-day gain against the greenback since November 2016 the day after the vote.

Russia, which last tapped the Eurobond market in 2019, is seeking additional funding sources to fill a budget shortfall caused by lower oil prices and the COVID-19 pandemic.

(Reporting by Andrey Ostroukh, Elena Fabrichnaya and Darya Korsunskaya; Additional reporting by Alexander Marrow, editing by Ed Osmond)

((andrey.ostroukh@thomsonreuters.com; +7 495 775 1242;))

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