By Ivan Anderzhanov in Moscow
The Russian government has unveiled a beauty parade of investment banks who will compete to take part in Russia’s first international bond issue in over a decade.
Russian investment bank VTB Capital is understood to have secured a role as one of the lead managers, alongside three bulge-bracket banks such as Goldman Sachs.
Yuri Soloviev, global chief executive at VTB Capital, told EmergingMarkets.me last year his team would play one of the key roles in Russia’s first eurobond issue in ten years. Sources at Goldman Sachs indicated that they would secure a co-lead arranger mandates on the sovereign issue. “We have done a lot of the grunt work already,” said a Goldman source.
The Russian Ministry of Finance has invited about 20 investment banks to make pitches to participate in the Eurobond issue, which is tipped by Troika Dialog analysts to be worth $5-7bn.
Deutsche Bank, Barclays Capital, Credit Suisse, JP Morgan, Citigroup, UBS and Nomura are all believed to be on the short list.
The Eurobond issue, outlined in the 2010 budget, would be the first since Russia defaulted on $40bn of domestic bonds in 1998. It would assist the government meet domestic spending commitments after the budget slipped into deficit.
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