On Monday, July 12, Belarus begins the so-called road-show in anticipation of Eurobonds issuance. Organizers of meetings with European investors, working with fixed income papers, are such banks as BNP Paribas, Deutsche Bank, The Royal Bank of Scotland and Sberbank of Russia.
When completing the road-show, Belarus will be able to take a final decision to enter the borrowing market if there are conditions for loan, PRIME-TASS informs referring their sources on the markets.
This year, the amount of Belarus borrowing on world stock markets should be about one billion dollars. As Belarusian service of Radio Liberty notes, it is expected that interest rates under stock borrowing for Belarus will be quite high because of low sovereign credit rating of the country. Thus, these loans will cost Belarus four to five times more than credits of the International Monetary Fund.
As Telegraf previously reported, according to information of Belarus’ Finance Minister, Andrei Kharkovets, Belarusian bonds issue in Russia, amounting to approximately 500 million dollars in equivalent in Russian rubles, will be carried out by Sberbank.
Andrei Kharkovets reported that Ministry of Finance of Belarus «is absolutely ready» for the first issue of Eurobonds. At the same time, the head of the Ministry of Finance noticed that due to the current situation in the world financial markets, it’s difficult to enter them
The government of Belarus was allowed to issue Eurobonds in 2010-2011 up to two billion dollars with circulation period of not less than five years and placing them outside the country. This decision was made by Alexander Lukashenko’s decree № 245 «On the issue of government bonds of the Republic of Belarus» dated May 13.