Rouble convertibility crucial to Moscow’s funding plans

Sergei Pakhomov: rare Russian euro issuer

Demand for the City of Moscow’s recent Eurobond was so strong that lead managers Citigroup, Deutsche Bank, Dresdner Kleinwort and JPMorgan were able to revise price talk on the €407 million 10-year issue down from initial price guidance of 105 to 110 basis points over euro mid-swaps down to the final level of 102bp. Sergei Pakhomov, head of funding for the City of Moscow, talks to Euromoney about the issue, and explains what full rouble convertibility will mean for the city’s funding strategy.