Russia Considers Secondary Offering of Eurobonds

A board advertising VEB bank (Vnesheconombank) is pictured outside its office in Moscow.

Russia’s state development bank Vneshekonombank (VEB) is considering a second offering of Russian eurobonds amid high demand from international investors, the RIA Novosti news agency reported Friday.

The Russian Finance Ministry sold bonds worth $1,75 billion this week, but total demand stood at $7 billion, the Ministry said. An additional $500 million of bonds were bought by Russian banks.

“We are not ruling it [the possibility of secondary offering of bonds] out. I think it is likely that we will enter the market this year,” said VEB’s first deputy chairman Nikolai Tsekhomsky, RIA Novosti reported.

Head of Russia’s second-largest bank VTB, Andrei Kostin, said that 70 percent of bonds were purchased by investors from the United States, Britain, continental Europe and Asia.

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