Russian finance ministry announces exchange of $4 bln Eurobonds

September 13, 2017 - Prime

 

The Finance Ministry has announced the start the exchange of two issues of Eurobonds totaling no more than U.S. $4 billion for other issues, the ministry said in a statement on Wednesday.

The ministry plans to exchange Eurobonds maturing in 2018 and 2030 for additional issues of Eurobonds maturing in 2027 and 2047. The buyback price of the 2018 Eurobonds should not exceed 107.8% of a face value, and the buyback price of the 2030 Eurobonds should not be more than 117.5% of a face value, the ministry said.

Owners of the Eurobonds that want to participate in the exchange should submit their bids to VTB Capital until September 19, and the buyback price will be defined on September 20 after the bid book is analyzed.

VTB Capital, GBP International, and Sberbank CIB will act as the organizers of the exchange.
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Issuer, issue numberRussia, 11.0% 24jul2018, USD
Type of debt instrumentInternational bonds
Issue statusoutstanding
Type of placementPublic
Par, currency of issueUSD 1,000
Amount3,466,398,000
Registration date07/24/1998
State registration numberMK-0-CM-126
ISINXS0089375249
End of placement07/24/1998
Date of circulation start01/11/2005
Initial issue price73.858
Yield at pricing15.77
Coupon11.0%
Coupon frequency2 time(s) per year
Settlement date07/24/1998
Maturity date07/24/2018
Issue ManagersPlacement participant: Goldman Sachs Paying agent: Citibank NA (London)
Trading floorMoscow Exchange, XS0089375249 (First level, 12/21/2004), Luxembourg S.E., Frankfurt S.E., Berlin Exchange
Cbonds page: Russia
Issuer profile:

The Russian Federation is a sovereign and democratic federal state, consisting of 83 sub-federal political units. Russia is the largest country in the world by land mass, covering 17.1 million square kilometres. Russia borders 16 countries and spans nine time zones, extending some 9,000 kilometres from the Baltic Sea in the west to the Pacific Ocean in the east and some 4,000 kilometres from its southern border on the Black and Caspian Seas to its northern limits on the Arctic Ocean.

Russia is rich in natural resources. It is the world’s second-largest producer of natural gas, the world’s leading producer of oil and a significant producer of coal, uranium, nickel, palladium and platinum. As of 1 January 2009, Russia’s A, B and C1 natural gas reserves (which include explored reserves considered to be fully extractable pursuant to the Russian reserves system) were estimated at 47.8 trillion cubic metres.The country also has substantial gold deposits (located mainly in Eastern Siberia and the Russian Far East) as well as significant deposits of zinc, lead, tin, silver, other rare metals and precious and semiprecious stones. Russia is among the world’s leading producers of electricity, steel, fertilisers, cotton textiles and other goods. Forests cover approximately 52% of Russia’s total land area, and Russia’s timber reserves, the largest of any country, are estimated at 83.3 billion cubic metres.

Russia is home to approximately 143 million people, ranks ninth in the world by population and has a population density of approximately 8.3 persons per square kilometre. Roughly 79% of the population lives in European Russia, and approximately the same percentage of Russia’s population lives in cities. Russia’s capital and largest city is Moscow with 11.5 million inhabitants, and 11 other Russian cities have a population of more than one million residents.

Outstanding issues:
53 issuesRUB8,849,065,888,000
12 issuesUSD51,589,174,656
1 issuesEUR750,000,000
Issuer rating:
RIA RatingBBB+/StableSovereign ratings09/04/2015
Dagong CreditA/StableInternational scale rating (foreign curr.)09/06/2017
Dagong CreditA/StableInternational scale rating (local curr.)09/06/2017
Organisation for Economic Co-operation and Development (OECD)4/Country Risk Classifications06/24/2016
Rating-Agentur Expert RABBB-/Rating scale of the creditworthiness of sovereign governments (SGC) -National currency07/14/2017
Rating-Agentur Expert RABBB-/Rating scale of the creditworthiness of sovereign governments (SGC) - Foreign currency07/14/2017
Rating-Agentur Expert RABBB-/Rating scale of the country credit environment (CCE) rating - National currency07/14/2017
Rating-Agentur Expert RABBB-/Rating scale of the country credit environment (CCE) rating - Foreign currency07/14/2017
Moody's Investors ServiceBa1/StableLT- foreign currency02/17/2017
Moody's Investors ServiceBa1/StableLT- local currency02/17/2017
S&P Global RatingsBB+/PositiveForeign Currency LT03/17/2017
S&P Global RatingsBBB-/PositiveLocal Currency LT03/17/2017
S&P Global RatingsNR/LT National Scale (Russia)06/02/2017
Fitch RatingsBBB-/StableLT Int. Scale (foreign curr.)03/31/2017
Fitch RatingsWithdrawn/National Scale (Russia)09/02/2011
Fitch RatingsBBB-/StableLT Int. Scale (local curr.)03/31/2017
Rating Agency RAEX (Expert RA)Withdrawn/Foreign curr. scale07/04/2016
Rating Agency RAEX (Expert RA)Withdrawn/Local curr. scale07/04/2016
National Rating AgencyiBBB/StableGlobal scale09/30/2016
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