Belarus to float government bonds in Russia on 23 December

The first tranche of bonds is estimated at RUB7 billion. Investors will be offered seven million securities at the face value of RUB1,000 each.

The Federal Financial Markets Service of Russia have registered and allowed for public placement in Russia inconvertible interest-bearing certified government bonds of Belarus. The bonds will be placed on the Moscow Interbank Currency Exchange (MICEX). The maturity period is 728 days.

The first floatation of government bonds was scheduled for 25 November 2010.

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 instability of the global financial market.

Earlier was reported that 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 will be organized by four Russian bans, namely Sberbank, Gazprombank, Vnesheconombank, and Alfa-Bank.  

According to