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Russia for the first time places ruble Eurobonds at the London Exchange

Tags: Kudrin
The Finance Ministry has successfully placed seven-year Eurobonds denominated for the first time in Russia’s newest economic history in ruble, the country’s national currency at the London Stock Exchange (LSE). The move was seen as a huge achievement by the financial and economic blocs of the cabinet. 
 

The volume of the Eurobonds placement totaled 40bln rubles, or about $1.36bln, according to the forex conversion exchange rate. “This means that Russia has received investors’ trust for local securities, denominated in Russian ruble with international circulation, and this in turn means that the choice of a ruble as an investment instrument will soon become habitual among investors,” Finance Minister Alexei Kudrin added. “By this step, Russia for the first time has opened a new page in the history of its sovereign bonds placements denominated in ruble, thus meeting one of the major attributes of ruble as a global reserve currency.”


Commenting on the structure of bonds placement participants, Kudrin called it a fully internationalized affair as investors from both developed and developing markets took part in the action. “If spread by countries of origin, British funds and companies accounted for approximately 47%, U.S. companies and funds accounted for about 26%, Russian funds and companies for 4%, while funds and companies from other countries accounted for the rest 22%,” he noted. “If categorized by the profile activities of the investors, investment funds accounted for 57%, ordinary banks accounted for 18%, while the rest was accounted for by insurance companies, state agencies and other financial organizations. “This was quite a good bonds placement structure that highlighted investor’s trust in Russia and its sovereign bonds.” 


Commenting on the good news, the prime minister noted the debut placement of Russia’s ruble-denominated Eurobonds at the LSE, calling it the first of its type in post-Soviet Russia’s contemporary economic history. “It is a very serious step forward, from the point of view of the realization of our strategic plan for creating a global financial center in our country, promotion of the Russian ruble as the world reserve currency for cross-border market operations, and finally, a positive signal for the whole of our economy.”