Reports: Russia will place eurobonds late April, first borrowing in 12 years
By APWednesday, March 31, 2010
Russia seen borrowing for 1st time since 1998
MOSCOW — Russia’s finance minister says the country is likely to go ahead with a eurobond issue in late April, the first time it will have borrowed from capital markets since 1998.
The government needs to raise extra cash to manage a budget deficit equal to 6.4 percent of economic output.
Alexei Kudrin was quoted by Russian news agencies on Wednesday as saying that Russia will probably place eurobonds after a road show on April 21-22.
Kudrin confirmed that the government may place as much as $17.8 billion worth of bonds this year, but is likely to borrow significantly less.
Russia’s economy contracted by 7.9 percent amid the global downturn last year, but has been on a rise since the third quarter last year thanks to strong oil and commodities prices.
