Russia bins clumsy reputation, takes $6.96bn

By Francesca Young
12 Sep 2013

Few expected Russia to provide the first massive sovereign trade for the CEEMEA region in September — and to offer its largest new issue premium for years in order to beat an expected rush of supply. But when it did so on Monday for its $6.96bn Eurobond, the issuer won praise from bankers for showing flexibility and a willingness to adapt to market conditions to hit its target, a marked difference to the usual accusation of an issuer that throws its weight about, unhappy to negotiate with investors to find fair pricing for its debt.

Barclays, Deutsche Bank, Gazprombank, Renaissance Capital, Royal Bank of Scotland and VTB Capital arranged the deal for the Baa1/BBB/BBB rated sovereign, which was selling $6bn of dollar tranches and a €750m euro tranche.

The sovereign had an obstacle course of market event risk as well of political risk ...

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