Belarus may float bonds in Russia in 2010

Belarus does not rule our a possibility of floating government bonds on the Russian market in 2010,  told Deputy Prime Minister of Belarus Andrei Kobyakov.

“The situation will show if it is favorable for us to float bonds or not,” he said. The Vice Premier added: “We are currently looking into every possible variant”.

Belarus President Alexander Lukashenko signed Decree No 527 authorizing the Belarusian government to issue at most RUB15 billion worth of government bonds in Russia in 2010-2011, with the maturity period of 5 years at most. The organizers of the floatation are four Russian banks: Sberbank, Gazprombank, Vnesheconombank and Alfa-Bank.

The first floatation of RUB7 billion government bonds was scheduled for 25 November 2010. There were plans for seven million securities at the face value of RUB1,000.

The book of applications for the first tranche was opened on 10 November. According to the Sberbank, the total demand for the first tranche of the Belarusian bonds exceeded the supply 1.4 times to RUB9.95 billion. Readiness to purchase bonds was voiced by 29 investors.

Belarus, however, suspended the floatation of bonds in Russia due to the instable global financial market.

According to