Russia Picks Banks for Global Eurobond Issue

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MOSCOW, May 18 Reuters Russia has picked three large stateowned banks to organise a sovereign Eurobond issue in 2021, the finance ministry said on Tuesday, indicating Moscows intention to proceed with global borrowing despite the latest U.S. sanctions.

Gazprombank, Sberbank CIB and VTB Capital were picked as organisers for the Eurobond issue, the ministry said. It did not provide further details on the timing of the placement nor the currency and size of the future issue.

Two banking sources familiar with the borrowing plans said Russia was considering placing a new 15year eurodenominated bond as well as a topup issue of an existing eurodenominated Eurobond maturing in 2027.

One of the sources, who spoke on conditions of anonymity due to the sensitivity of the issue, said the placement was possible by the end of the week, depending on market conditions.

The finance ministry has said it was confident that Russia would tap the global debt market this year and was considering a eurodenominated Eurobond.

Russia is preparing to offer bonds on the global market for the first time in 2021 despite heightened geopolitical risks that have recently battered Russian markets.

Russian assets took a hit from the latest U.S. sanctions against Moscow, which Washington announced in April over alleged malign activity, including interfering in last years U.S. election, cyber hacking and bullying neighbouring Ukraine.

They will bar U.S. banks from buying Russian roubledenominated…

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