Moscow Government To Announce Parameters Of Eurobond Issue

It is expected that the Moscow government will announce the final parameters of issue of its Eurobonds worth 300 million euros this afternoon, which will be practically the first appearance of a Russian borrower on international capital markets since the financial crisis of 1998. The city will receive a foreign loan for three years as a credit, financed through issue of credit sharing certificates. The credit will be granted to the city by BHF BANK AG, and ING Barings and UBS Warburg will jointly act as lead managers for placement of the eurobonds. Sergei Pakhomov, chairman of the Moscow Committee on Municipal Loans and Stock Market Development, said in an interview with RBC that the Moscow government had begun placement of its loan on October 15 and hopes to complete it practically within one day. It is planned that interest rates for Moscow's Eurobonds will be close to those of Russia's Eurobonds in German marks to be redeemed in March 2001, Pakhomov pointed out. He remarked that the Moscow government conducted a road show for its Eurobonds in a number of cities of Western Europe, the leading financial centers, at the beginning of October. During the road show, representatives of the Moscow government met with representatives of 186 corporate investors in London, Paris, Frankfurt, Zurich, Geneva, Milan, and Vienna. The road show demonstrated serious interest in securities of Moscow and Russia, despite the aftermath of the terrorist attacks in the US and the beginning of the anti-terrorist operation on Afghanistan, Pakhomov pointed out.