Goldman Sachs Among 22 Candidates on Russia Eurobond ListScott Rose
Russia selected 22 banks as possible organizers of its first Eurobond sale in more than a year, the government said.
The list to manage a planned $7 billion offering has four domestic lenders and 18 foreign banks including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Deutsche Bank AG, according to a government decree published today and dated May 28.
The release indicates the government overcame a dispute between the economy and finance ministries over how to pick banks to organize the sale, which left Russia unable to tap the market when yields fell to record lows earlier this year. The world’s largest energy exporter sold $7 billion of bonds in March 2012, including 30-year debt, in what was the largest emerging-market sovereign issue since 2009.
The decree gives the Finance Ministry the right to select from among the approved organizers for bond issues this year on international capital markets. Deputy Finance Minister Sergei Storchak said May 16 the government was considering Deutsche Bank and Citigroup Inc., while Sberbank CIB, VTB Capital and OAO Gazprombank were also candidates. There will be “rotation” from the managers picked last year, according to Storchak.