Russia to place up to $7 bn in eurobonds in 2012

22nd December 2011, Comments 0 comments

Russia announced plans on Thursday to place up to $7.0 billion (5.4 billion euros') worth of eurobonds next year depending on market conditions and the pace of Europe's recovery from its sovereign debt crisis.

"We will be placing them in parts depending on the situation on the market," news agencies quoted Finance Minister Anton Siluanov as saying.

"We will see how the situation develops, how acceptable the borrowing costs are," he said. "We will be taking a conservative approach."

A top finance official had earlier said that Russia would probably place its bonds at the start of the year because market conditions could deteriorate with time.

The ministry has on previous occasions preferred to issue 10-year note.

Russia returned to the global debt market after a 12-year absence in 2010 and placed $5.5 billion dollars in eurobonds in two tranches that April.

But it began issuing ruble-denominated eurobonds this year in a show of confidence in the Russian currency.

Russia has a low debt level of just 10 percent of gross domestic product but is expecting a budget shortfall in 2012 should oil prices continue to fall.

© 2011 AFP

0 Comments To This Article