Federal Grid May Sell Ruble Eurobonds This Year, Prokhorov Says

Federal Grid Co., Russia’s state monopoly for high-voltage power transmission, is considering a debut sale of ruble Eurobonds as early as this year to fund network upgrades.

Federal Grid “doesn’t exclude” selling some ruble-denominated Eurobonds this year, Financial Director Egor Prokhorov said in a telephone interview on May 15. The board approved a program to sell as much as 100 billion rubles ($3.2 billion) of Eurobonds, according to its website.

Russia’s sovereign 2018 ruble-denominated Eurobonds fell yesterday, pushing the yield up six basis points to 7.147 percent. Sovereign domestic bonds, known as OFZs, with the same maturity yielded 8.07 percent, data compiled by Bloomberg show. Such a difference in rates creates an incentive to try borrowing rubles abroad rather than at home, according to Federal Grid.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.