Russia will launch a road show for its first Eurobond in over a decade in New York on April 21-22 and may borrow up to 1.5 trillion rubles ($51 billion) at home and abroad this year, Finance Minister Alexei Kudrin said Friday.
Russia plans to tap the international markets for up to $17.8 billion this year, helping to plug a yawning budget gap following its deepest recession in 15 years while taking advantage of sharply improved investor sentiment towards the country.
The Finance Ministry has previously said the first tranche — organised by VTB Capital, Citi, Barclays and Credit Suisse — could be $3 to $5 billion and that Russia would likely be ready for the issue from April, though the timing would depend on market conditions.
Maturities of 10 and 30 years are being considered, while euros and dollars are seen as the most likely currencies.
Kudrin, talking to reporters on the sidelines of a banking conference, gave no further details on Russia's Eurobond plans but said it was important for the sovereign borrower not to compete with the private sector for funding.
In a sign of favorable investor sentiment, yields on Russia's benchmark 2030 Eurobond have fallen to historic lows of 4.9 percent from nearly 13 percent at the height of the economic crisis in late 2008.
Russian companies are also taking advantage of increasing investor appetite, with state-controlled VTB, Bank of Moscow and Russian Agricultural Bank, as well as private Alfa Bank placing some $3.6 billion in Eurobonds in the past month.
Many others are queuing up, with Russian Railways due to hold a roadshow next week for a $1 billion issue.