Belarus floats RUB7bn worth of government bonds in Russia

The bonds were placed on the Moscow Interbank Currency Exchange. In the near future they will be available for the secondary market.

The Finance Ministry considers this bond issue to be another step on the way towards opening external financial markets for Belarusian organizations.

Belarus stopped taking applications to buy the bonds on 21 December. The total demand for the bonds stood at RUB8.15 billion. According to the Finance Ministry, the demand to float all the Belarusian bonds was triggered by the coupon profit of 8.7% per annum.

Investors bought seven million bonds with the face value of RUB1,000 each.

Russia’s Federal Service for Financial Markets registered and allowed for public placement in Russia inconvertible interest-bearing certified government bonds of Belarus on 9 November. The maturity period is 728 days.

The first floatation of government bonds was scheduled for 25 November 2010. Belarus, however, suspended the floatation of bonds in Russia due to the instability of the global financial market.

The Belarus President signed decree No. 527 to authorize the Belarusian government to float at most RUB15 billion worth of government bonds in Russia in 2010-2011, with the maturity period of five years at most. The floatation is organized by four Russian banks, namely Sberbank, Gazprombank, Vnesheconombank, and Alfa-Bank.

According to