Russia is exploring international bond issuance for the first time since the war in Ukraine sparked sanctions from the West in 2014, in a sign that the Kremlin is keen to find additional sources of revenue as the economy heads for a second year of recession.
The country’s finance ministry said on Friday it had approached 25 western investment banks and big Russian lenders Sberbank, VTB, and Gazprombank about a possible euro bond.
Russia last raised cash on international markets with a $7 billion bond in 2013, though with this year’s budget earmarking $3 billion for a possible sale the amount sold is likely to be lower.
An executive at one of the banks said the ministry was exploring raising €3 billion. A second banker at a European bank said Russia was likely to seek benchmark 10-year debt.
Viktor Szabo of Aberdeen Asset Management, said: "Trading in Russian paper has been quite strong in recent months. Russia could come to market now with bonds that yield less than they did in 2013." – The Financial Times Limited 2016
