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Russia: Government Announces New Eurobond Issue Worth $ 2 Billion

Moscow, 19 June 1997 (RFE/RL) - The Russian government today announced its third international eurobond issue, worth about $ 2 billion, officially planned for June 26.

Interfax news agency said the lead banks for the 10-year bonds with a 10 percent yield would be J.P. Morgan and SBC Warburg.

The yield and term of this issue are the highest since the Russian government launched its international borrowing program last November, with its first bond issue to western investors since the 1917 Bolshevik revolution.

Issuing eurobonds on international markets is a cheaper borrowing option for the Russian government than issuing state treasury bills or other domestic debt instruments, which carry higher interest.