(Adds details, quotes, background)
MOSCOW, June 19 Russia is issuing 10- and
30-year tranches of U.S. dollar-denominated Eurobonds, two
sources familiar with the transaction told Reuters on Monday,
adding that the order book would be closed on Tuesday.
The sources did not specify the exact amount the finance
ministry aims to raise but said it was likely to be of a
benchmark size. Yield guidance for the 10-year paper was 4.0-4.5
percent and for the 30-year debt it was 5.0-5.5 percent, they
Russian government debt stood at just 12.9 percent of gross
domestic product at the end of last year, of which only about a
quarter is owed to external investors. But the finance ministry
plans to stay in international markets to help it develop its
"The government intends to maintain its presence in
international capital markets and continue to develop a
benchmark yield curve," the prospectus for the Eurobond offering
seen by Reuters said.
Settlement on Monday's issues is set for June 23 and both
papers will be settled via Euroclear and the National Settlement
Depository (NSD), the domestic clearing house, the sources said.
VTB Capital is acting as a sole arranger.
Last year Russia raised a total of $3 billion via two
issues, its first foray into international markets since Western
countries imposed sanctions on Moscow in 2014 over its role in
the Ukraine crisis.
The first tranche, worth $1.75 billion, did not go smoothly:
it was cleared by NSD only in the first such type of deal for
the domestic clearing house, as Euroclear decided to stay away
from the issue.
Euroclear started settlements with the paper in July.
This year, Moscow intends to issue $3 billion in
new debt and swap $4 billion in outstanding Eurobonds for new
Two financial market sources told Reuters earlier this month
that the ministry planned to offer an outstanding sovereign
Eurobond maturing in 2028 as a swap for new paper, but the
timing of the swap was unclear.
Overall, however, the finance ministry does not expect to
increase its dependence on international markets as a source of
"The government expects that the relative share of domestic
and external public debt in the overall public debt profile will
not change materially over the next three years and that
domestic debt capital markets will continue to provide a key
source of capital in the medium term," Monday's prospectus said.
(Reporting by Kira Zavyalova and Oksana Kobzeva; Writing by
Dmitry Solovyov/Katya Golubkova; Editing by Maria Kiselyova and