Russian Finance Ministry places OFZ bonds worth 100 billion rubles

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Russian Ministry of Finance Raises $1.34 Billion in OFZ-26245 Bond Sale

The Russian Ministry of Finance has successfully placed 100 billion rubles ($1.34 billion) worth of federal loan bonds (OFZ-26245) at an auction, with total demand reaching 144.97 billion rubles ($1.94 billion).

The auction saw the entire available balance of the bond issue being offered for placement. The final placement amounted to 100.035 billion rubles ($1.34 billion), generating proceeds of 94.336 billion rubles ($1.26 billion).

Bonds were sold at a cut-off price of 88.7028% of their nominal value, with an average weighted price of 88.7462%. The yield to maturity at the cut-off price was 14.70% per annum, matching the yield at the average weighted price.

The bonds have a maturity date of September 26, 2035, and carry a fixed coupon rate of 12.00% per annum for the entire term of circulation.

This overview was provided by Alexei Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Higher School of Management at the Financial University under the Government of the Russian Federation.