BELARUS NEWS AND ANALYSIS

DATE:

09/12/2009

Belarus sees 8 pct as fair yield for debut Eurobond

MINSK, Dec 9 (Reuters) - Belarus sees 8 percent as a fair yield for the debut Eurobond issue it plans in 2010, Finance Minister Andrei Kharkovets said on Wednesday.

"Some countries with comparable ratings have entered the market...A price of around 8 percent -- in principle, that is a fair price," Kharkovets told reporters.

Belarus plans to issue at least $500 million of Eurobonds and is in talks with Sberbank, Russia's biggest lender, on the organisation of the issue.

Standard & Poor's rates Belarus' B+ on long-term foreign currency debt with a negative outlook, while Moody's has it at B1 -- both four notches in to the speculative grade category.

Among similarly ranked sovereign issuers, Sri Lanka in October sold $500 million in 7.40 percent global bonds maturing in 2015.

Belarus has seen its economy dented badly by deteriorating demand from recession-routed Russia and Europe, its chief exports markets, forcing it to look for sources of external funding.

The former Soviet republic has discussed plans for raising a eurobond since 2007 as part of plans to raise capital on international markets. But the issue has repeatedly been postponed due to unfavourable conditions on world markets.

Source:

http://www.iii.co.uk/news/?type=afxnews&articleid=7663754&subject=companies&action=article


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