20 February 2004 02:41
Minfin approves Eurobond issue to exchange debt
MOSCOW. Feb 20 (Interfax) - The Russian Finance Ministry has approved the placement of an additional issue of Russian
Eurobond maturing in 2010 and 2030 amounting to not more than $700 million to restructure a first tranche of former
Soviet debt to the International Investment Bank and the International Bank for Economic Cooperation.
Deputy Prime Minister and Finance Minister Alexei Kudrin has signed the corresponding decree, the Finance Ministry
said on its website.
With another decree Kudrin approved an additional issue of Eurobonds maturing in 2010 and 2030 also amounting to not
more than $700 million to restructure debt to the IIB remaining after the exchange of the first tranche.
Deputy Finance Minister Sergei Kolotukhin told Interfax earlier that the Russian Finance Ministry plans to make an
official proposal to creditors to exchange the first tranche of former Soviet debt owed to the International Investment
Bank and the International Bank for Economic Cooperation for Russian Eurobonds next week.
"The exchange will probably start next week and we would like to round it off by the middle of March,"
Kolotukhin said.
Earlier Kolotukhin estimated that former Soviet debt to the IIB and the IBEC amounted to $1.248 billion, not
including interest, including $710.4 million to the IIB and $537.8 million to the IBEC.
Kolotukhin said that the amount of debt to be regulated as part of the first tranche amounts to $426.6 million in
principal debt, including $229.9 million to the IIB and $196.7 million to the IBEC.
Kolotukhin said that as a result of the exchange of the first tranche of former Soviet debt to the IIB and the IBEC,
Russia's additional Eurobond issue will amount to $403.6 million, including $354.6 million maturing in 2030 and
$48.9 million maturing in 2010. Cash payments to creditors that will be carried out during the restructuring of the debt
are estimated at $60 million.
The Finance Ministry selected J.P. Morgan Chase Bank to act as agent for the first tranche debt swap.
The remaining debt - the second tranche -will amount to $480.5 million. This debt will be regulated based on
bilateral agreements between Russia and the IIB, also by restructuring it into Eurobonds, maturing in 2010 and 2030.
Kolotukhin said earlier that talks to regulate $341 million of debt to the IBEC are still underway. [RU EUROPE ASIA
EEU EMRG ECI EUB DBT BNK] rd <>
[Interfax] |
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