Russia sold more than $3bn in sovereign debt on Tuesday in its first bond sale since returning to the international debt markets last year even as sliding oil prices and fresh US sanctions cloud the outlook for the economy.
The finance ministry said that it sold $1bn in 10-year Eurobonds at 4.25 per cent interest and $2bn in 30-year Eurobonds at 5.25 per cent interest, the lowest rates in the country’s history.
The deal was more than 2x oversubscribed, attracting $6.6bn in demand. Foreign investors, “most of whom” were American, bought a “large part” of the issuance, said Andrei Soloviev, head of debt capital markets at VTB Capital, the Russian state-run investment bank that was the sole organizer of the deal.
Russia also intends to sell a further $4bn in new bonds to replace existing debt by the end of the year.