VTB Capital to organize Ukrainian eurobonds issue in Russia's favor - Putin

11:35, 19.12.2013 1 min read

VTB Capital will organize an issue of eurobonds by Ukraine, which will be placed on the Irish Stock Exchange in favor of the Russian Federation, Russian President Vladimir Putin said at a press conference.

Putin said this was Ukraine's own suggestion. He said the choice of organizer was not that big a deal for Russia.

National Welfare Fund money that Russia plans to invest in the Ukrainian eurobonds is being placed on commercial terms with a 5% coupon rate, Putin said.

Using Fund monies, Russia might before this week ends acquire $3 billion worth of the two-year Ukrainian bonds at what should be a 5% per annum rate.

Finance Minister Anton Siluanov said that this eurobond issue by Ukraine was not intended especially for Russia. "This issue was planned in the budget, [our] Ukrainian colleagues were looking to enter the market, so [we] needed to lend a shoulder in timely fashion," he said.

Russia plans to buy Ukrainian eurobonds next year, too, perhaps $12 billion worth.