OREANDA-NEWS. The Ministry of Finance is placing Eurobonds in dollars with maturity in 2029 and 2035, two sources in the financial market told the Russian media. The benchmark yield of 10-year securities is about 4%, 16-year-olds - about 4.45%. The placement is organized by VTB Capital and Gazprombank. The deal should take place as early as Thursday, June 20, a book of applications is being formed.

The time for placement is close to ideal, taking into account yesterday's results of the US Federal Reserve meeting (the regulator sees more and more arguments in favor of policy easing) and the extremely positive reaction of the global debt market, a sharp decline in yields of US Treasury and emerging markets securities, the Russian Fund's Chief Economist lists direct investment Dmitry Polevoy. Fundamental indicators of Russia from the point of view of debt investors are among the best among developing countries, he says, so demand will certainly be high, especially considering the fact that the benchmarks for profitability suggest a premium to the secondary market.

Kirill Tremasov, director of the analytical department of Loko-Invest, believes that a very good moment for the issuer, on the markets, is agiotage: “I think they will place 15-20 basis points below the benchmark. If at the G20 summit in Osaka at the end of June 2019, there is positive news about the trade relations between the US and China, yields may turn up", he adds.

Russia's budget is executed with a large surplus — about 2.7% of GDP, and the National Wealth Fund is growing (by the end of 2019 its liquidity should exceed 7% of GDP, which will allow the authorities to invest reserves). The plans of the Ministry of Finance for the issue of Eurobonds can be explained by the desire to be present in the global capital market, argues the Expert.