Russia will probably select the organizers for a sale of as much as $7 billion of bonds to international investors next week in its first offering for more than a year.
The government is considering Deutsche Bank AG (DBK) and Citigroup Inc. (C), while Sberbank CIB, VTB Capital and OAO Gazprombank are also candidates to be among the four organizers, Deputy Finance Minister Sergei Storchak told reporters in the Black Sea resort of Sochi today. There will be “rotation” from the managers picked last year, he said.
While developing economies from Hungary to Colombia tapped the overseas debt markets this year to take advantage of borrowing costs, Russia refrained as the Finance and Economy ministries disagreed over the bank selection process. The world’s biggest energy exporter lured $24 billion of bids for $7 billion of securities in March last year.
“June is round the corner and it’s time for us to sell,” Storchak said, adding that the country probably won’t hold investor meetings. “There’s a feeling that appetite for Russian risk remains high.”
The government is considering dollar-denominated debt rather than securities in euros, Storchak said.
The yield on the country’s dollar bonds due April 2042 fell three basis points to 4.54 percent by 8:56 p.m. in Moscow, compared with a low of 4.17 percent on December 3.
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