Russia’s success with 30-year eurobond to simplify long-term corporate bond issuance – Finance Ministry

 

Finance Minister Anton Siluanov considers the successful 30-year eurobond sale an important landmark as the issue may become a benchmark for long-term corporate issues. “The most important fact is that 30-year bonds garnered the most demand. It us important as we have other issuers who can raise such long-term money,” Siluanov told journalists Thursday.
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Issuer, issue numberRussia, 2042
Type of debt instrumentInternational bonds
Issue statusoutstanding
Type of placementPublic
Par, currency of issueUSD 200,000
Amount3,000,000,000
State registration number12840061V
ISINXS0767473852
End of placement03/28/2012
Date of circulation start04/20/2012
Initial issue price97.553
Yield at pricing5.798
Coupon5.625%
Coupon frequency2 time(s) per year
Settlement date04/04/2012
Maturity date04/04/2042
Issue ManagersCitigroup, Deutsche Bank, BNP Paribas, VTB Capital, Sberbank
Trading floorMoscow Exchange, XS0767473852 (First level), London S.E., Berlin Exchange
Cbonds page: Russia
Issuer profile:

The Russian Federation is a sovereign and democratic federal state, consisting of 83 sub-federal political units. Russia is the largest country in the world by land mass, covering 17.1 million square kilometres. Russia borders 16 countries and spans nine time zones, extending some 9,000 kilometres from the Baltic Sea in the west to the Pacific Ocean in the east and some 4,000 kilometres from its southern border on the Black and Caspian Seas to its northern limits on the Arctic Ocean.

Russia is rich in natural resources. It is the world’s second-largest producer of natural gas, the world’s leading producer of oil and a significant producer of coal, uranium, nickel, palladium and platinum. As of 1 January 2009, Russia’s A, B and C1 natural gas reserves (which include explored reserves considered to be fully extractable pursuant to the Russian reserves system) were estimated at 47.8 trillion cubic metres.The country also has substantial gold deposits (located mainly in Eastern Siberia and the Russian Far East) as well as significant deposits of zinc, lead, tin, silver, other rare metals and precious and semiprecious stones. Russia is among the world’s leading producers of electricity, steel, fertilisers, cotton textiles and other goods. Forests cover approximately 52% of Russia’s total land area, and Russia’s timber reserves, the largest of any country, are estimated at 83.3 billion cubic metres.

Russia is home to approximately 143 million people, ranks ninth in the world by population and has a population density of approximately 8.3 persons per square kilometre. Roughly 79% of the population lives in European Russia, and approximately the same percentage of Russia’s population lives in cities. Russia’s capital and largest city is Moscow with 11.5 million inhabitants, and 11 other Russian cities have a population of more than one million residents.

Outstanding issues:
62 issuesRUR7,320,702,250,000
11 issuesUSD45,684,574,656
1 issuesEUR750,000,000
Issuer rating:
Dagong CreditA/StableInternational scale rating (foreign curr.)10/30/2012
Dagong CreditA/StableInternational scale rating (local curr.)10/30/2012
Organisation for Economic Co-operation and Development (OECD)3/Country Risk Classifications06/27/2014
Moody's Investors ServiceBaa3/LT Int. Scale (foreign curr)01/16/2015
Moody's Investors ServiceBaa3/LT Int. Scale (loc. curr.)01/16/2015
Standard & Poor'sBB+/NegativeLT Int. Scale (foreign curr.)01/26/2015
Standard & Poor'sBBB-/NegativeLT Int. Scale (loc. curr.)01/26/2015
Standard & Poor'sruAAA/LT National Scale (Russia)01/26/2015
Fitch RatingsBBB-/NegativeLT Int. Scale (foreign curr.)01/09/2015
Fitch RatingsWithdrawn/National Scale (Russia)09/05/2011
Fitch RatingsBBB-/NegativeLT Int.l Scale (local curr.)01/09/2015
Rating Agency Expert RABBB+/Foriegn curr. scale12/26/2014
Rating Agency Expert RABBB+/Local curr. scale12/26/2014