“This year we are not planning any foreign market dealings,” said Finance Minister Anton Siluanov on the sidelines of the Moscow Financial Forum (September 12-13). He added that in the future, loans may be taken out in euros or yuans.
Last June, the Finance Ministry placed additional Eurobonds in USD redeemable in 2029 for $1.5 bln and with an annual interest of 3.95%, as well as Eurobonds redeemable in 2035 for $1 bln with an annual interest rate of 4.3%.
Previously, the ministry placed bonds twice in the past two years, namely in March 2018 and in March 2019. The first issue, worth $1.5 bln, is redeemable in 2029 and has an annual interest rate of 4.375%. The later issue, worth $3 bln, is redeemable in 2035 and has an annual interest rate of 5.1%. Also in March 2019, the Finance Ministry placed additional Eurobonds for EUR 750 mio with an annual interest rate of 2.375% and redeemable in 2025.
Bond yields in foreign markets have significantly decreased in 2019. In anticipation of new incentives, investors have been buying up any bonds with an appealing interest rate, which also allowed Russia to borrow funds at a rather competitive rate.
The Finance Ministry first announced its intention to place yuan bonds for $1 bln in November 2015. Last month, it was reported that the Chinese Finance Ministry will promote the decisions required for Chinese investors’ participation in yuan bond placement in the Moscow Exchange.