MOSCOW Oct 4 Two Russian borrowers,
state-controlled VTB and privately-owned Severstal
, issued price guidance for their benchmark Eurobond
issues, IFR said on Thursday.
VTB, Russia's No.2 bank, set initial guidance for the yield
on its upcoming 10-year Eurobond issue at around 7.25 percent,
IFR, a Thomson Reuters news and market analysis service, said.
It aims to use proceeds to support its Tier 2 capital ratio.
Steelmaker Severstal has revised guidance for its 10-year
issue to 5.90-6.00 percent from an initial level of around 6.125
percent, IFR said.
Russian borrowers have raised over $36 billion via Eurobond
issues so far this year, more than for the whole of last year,
with investors' enthusiasm boosted by liquidity injections from
the European Central Bank and U.S. Federal Reserve.
Both VTB's and Severstal's issues are of benchmark size,
which starts from $500 million for big names of this type.
Earlier on Thursday a banking source told Reuters that
Russian Standard Bank, a leader in Russian consumer lending, has
placed subordinated bonds worth $350 million with a yield of
10.75 percent and a term of 5.5 years.
(Reporting by Katya Golubkova; Editing by Lidia Kelly and Mark