23 Apr 2010

Russia raises $US5.5 billion on markets

6:27 am on 23 April 2010

Russia has raised 4 billion euros ($US5.5 billion) in its first international debt sale since it defaulted in 1998.

Initial reports said that demand for the Eurobond was five times over-subscribed despite growing caution among investors about government fund-raising.

The Eurobond was split between a $US2 billionn issue repayable in five years, and $3.5 billion in 10 years.

Reports said that the 5-year tranche was priced at 125 percentage points above US Treasury bonds, and the 10-year tranche priced at 135 points above.

Final pricing is expected later on Thursday. The BBC reports it's possible that Russia could raise more than $US5.5 billion.