On August 24, 2010, the revenue from additional placement of Eurobonds in the amount of $ 400 million got to the account of the Ministry of Finance of the Republic of Belarus. The yield of their redemption amounted to 8.251%, what allowed the Republic of Belarus to reduce the weight average yield of redemption of five-year's loan totaling $1 billion to 8.7%. It was reported on August 26 in the Finance Ministry of Belarus.
As Telegraf previously reported, total borrowings of Belarus by placing Eurobonds reached one billion dollars. As Belarus’ Finance Minister, Andrei Kharkovets, reported on August 10 «yesterday we placed $400 million more at a rate of 8.75% per annum».
Interest on the bonds would be paid semi-annually on February 3 and August 3 of each year at a rate of 8.75% per annum. Thus, the first interest payment will be made on February 3, 2011. Bonds’ redemption is scheduled on August 3, 2015.
Bonds ratings are similar to sovereign ratings of the Republic of Belarus — B1 (Moody’s) / B + (S&P).Eurobonds were listed at Luxembourg Stock Exchange.
White & Case and Allen & Overy acted as legal advisors of the issue from Belarusian side and banks-organizers, respectively.
Leading organizers of Belarus’ Eurobonds issue were four foreign banks BNP Paribas, Deutsche Bank, The Royal Bank of Scotland and Sberbank of Russia. Belarusbank took part as co-organizer of the issue.
Additional information, Eurobonds — bonds issued in currency, which is foreign to the issuer, placed with the assistant of international syndicate of underwriters among foreign investors, for whom the currency is foreign as a rule.
In general, the debtors, who issue Eurobonds, are governments, corporations, international organizations interested in obtaining funds for long term (from 7 to 40 years).
