Business news

Belarus floats $600m worth of eurobonds

MINSK, 1 March (BelTA) – Belarus has finished floating another lot of eurobonds worth $600 million with the maturity period of 12 years, the press service of the Belarusian Finance Ministry told BelTA.

“As a result of meetings of top officials of Belarusian financial and economic agencies with potential investors in New York and Boston, USA and in London, UK on 28 February 2018 the floatation of another issue of Belarusian eurobonds has been completed,” said the press service.

Belarus has floated $600 million worth of eurobonds with the maturity period of 12 years with the coupon rate of 6.20% per annum at 100% of their face value.

The Belarusian Finance Ministry is pleased with results achieved by the eurobond issue. Thanks to the effective macroeconomic policy pursued by the Belarusian government, the growing confidence of the economic community in the country’s credit worthiness the bonds were floated at 6.20% per annum, the lowest interest rate on record since Belarus started raising money by floating eurobonds.

The eurobonds were floated with the maturity period of 12 years, which is the most comfortable one from the point of view of the schedule of state debt payments.

The volume of bids submitted by over 190 international investors to buy the latest issue of Belarusian eurobonds exceeded $3 billion, with the final book at $2.4 billion.

The press service stated that 52% of the eurobonds were bought by investors from the USA, 30% from the UK, 17% from continental Europe, and 1% from Asia.

The bonds were floated using the 144a/Reg S format and can be listed on the Irish Stock Exchange.

Citibank and Raiffeisen Bank International AG acted as the organizing banks and underwriters. OAO Development Bank of the Republic of Belarus (DBRB) acted as a co-organizer without underwriting commitments.

White & Case LLP acted as Belarus’ legal advisor in English and American law. Clifford Chance LLP (advice in English and American law) provided legal services to the organizing banks. OOO Egorov Puginsky Afanasiev & Partners advised the banks on Belarusian law.

Belarus started a roadshow to sell the eurobonds in the USA and Europe on 15 February. In 2017 Belarus floated eurobonds to the tune of $1.4 billion. The eurobonds were sold in two tranches with the interest rates of 7.125% and 7.625%.