By Ivan Anderzhanov
Bulge bracket bank Goldman Sachs was the big loser after last Friday’s annoucement of the banks to manage Russias upcoming sovereign eurobond issue.
Barclays Capital, Citigroup, Credit Suisse and domestic bank VTB Capital are arranging the deal, according to a statement from the Finance Ministry.
US bank Goldman Sachs had been involved in pre-marketing for the sovereign issuance last year and had secured a prized mandate last time Russia tapped the Eurobond markets in June 1998 before it defaulted on its domestic debt.
Twenty banks were invited to pitch for the deal last December and the other big ticket losers included Deutsche Bank, JP Morgan and HSBC.
It had been reported that Russia was looking to raise as much as $18bn from a eurobond issue but bankers anticipate that the Kremlin will eventually look to raise about $3-5bn.
Two rating agencies, Fitch and S&P, raised the outlook for Russia’s sovereign debt within the past two months. Finance Minister Kudrin said this would make Russian borrowing significantly cheaper.
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