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Russia's VTB, Severstal issue Eurobond price guidance

Thursday, 4 Oct 2012 | 7:42 AM ET

MOSCOW, Oct 4 (Reuters) - 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 Potter)

((ekaterina.golubkova@thomsonreuters.com)(+7 495 775 1242))

Keywords: RUSSIA EUROBONDS/

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