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Finance ministry offers $150 million in bonds to legal entities

The Belarusian finance ministry has offered $150 million in government bonds to legal entities.

Denominated in a foreign currency, the 3½-year bonds have a fixed coupon and can be purchased through a bidding contest, a spokesperson for the ministry told BelaPAN.

The bids should be for at least $5 million worth of bonds, the source said, adding that the finance ministry would conclude purchase agreements based on the amount of the bid and the desired interest rate. The deadline for submitting the bids is October 22.

On October 5, Belzneshekanambank (Bank BelVEB) purchased $100 million worth of three-year government bonds denominated in a foreign currency with a coupon of one percent.

This became the first issue of foreign currency denominated bonds sold by the government inside the country this year.

In late October and early November, the finance ministry is expected to hold a road show for its new Eurobond issue.

The timing of the road show is ideal for a Eurobond issue at the beginning of 2013, said Finance Minister Andrey Kharkavets. The exact date of the issue will depend on investors' wishes, he said.

The finance ministry plans to hire European banks to organize the Eurobond issue. //BelaPAN