Belarusian Finance Ministry to issue $1bn worth of eurobonds in Q4 2010-2011


The Belarusian government has tasked the Finance Ministry with issuing up to $1 billion worth of long-term public bonds in Q4 2010-2011 abroad, with the maturity period of at least five years, told representatives of the Council of Ministers Office.

The Belarusian government has also approved the draft offering memorandum and draft contracts relating to the issue, floatation, circulation and redemption of the bonds. Those are, in particular, a draft contract between the Finance Ministry acting on behalf of the Belarusian government and the US company White & Case LLP for providing English law consulting services to Belarus, a draft letter the Belarusian Finance Ministry is supposed to send to Deutsche Bank AG (London branch, UK) to appoint a paying agent and a listing agent. Among them is a draft agent agreement between the Belarusian Finance Ministry and Deutsche Bank AG (London branch, UK) and Deutsche Bank Luxembourg SA (Luxembourg). The document package includes a draft letter the Belarusian Finance Ministry is supposed to send to the UK company Sterling Financial Print LTD to appoint a printing agency, a draft subscription agreement between the Belarusian Finance Ministry and BNP Paribas (London branch, UK), Deutsche Bank AG, Royal Bank of Scotland PLC (UK), Sberbank of Russia.

Belarusian Finance Minister Andrei Kharkovets has been authorized to hold negotiations to discuss the documents and to sign them. He has been authorized to make minor adjustments.

The Finance Ministry has been authorized to pay fees and commissions, to pay for other costs required for the issue, floatation, circulation and redemption of the bonds using the money the central state budget has allocated for servicing the external public debt.

In July 2010 Belarus accomplished its maiden floatation of $600 million worth of eurobonds to be redeemed in 2015, with the coupon rate at 8.75%. In August Belarus increased its maiden floatation by $400 million. The redemption yield was set at 8.251%, reducing the weighted average profitability of the $1 billion five-year loan to 8.7%.

BNP Paribas, Deutsche Bank, the Royal Bank of Scotland and Sberbank of Russia were the organizers of the eurobond floatation.

Belarusbank took part in the floatation as a co-organizer. White & Case provides legal consulting services while Allen & Overy and Magisters acted as organizing banks.

According to www.belta.by