Investors confident about the long-term outlook for Russia have been putting their money where their mouths are, and buying the government’s debut 30-year rouble-denominated bond.
According to research from Moscow Narodny Bank, R3.5 billion ($124 million) of bonds were auctioned at an average yield of 6.99%. The issue was three times oversubscribed, “indicating appetite for long-term paper amid Russia’s impressive macroeconomic fundamentals and increased political stability.”
Foreign investors are estimated to have bought as much as one-third of the issue.
The government has an extensive domestic debt issuance programme scheduled for 2006, which envisages selling R186 billion of government bonds and R65 billion of government savings bonds this year.
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