Russia's second-largest city of St Petersburg plans to raise up to 17 billion roubles ($565 million) on domestic bond markets in the autumn, returning to the market after a five-year break, a city official said.
Russian bond markets became hot again last year on the back of a firming rouble, excessive banking liquidity and risk aversion on foreign markets, but the rally seems to be running out of steam.
"We plan to start in September or October with a 5 billion rouble issue, then there will be the second issue worth another 5 billion roubles. Totally, we expect to have placed from two to three issues by the end of the year," Eduard Batanov, the head of the city's financial committee, told Reuters.
The city may raise up to 17 billion roubles, he added.
Batanov said the bonds would likely have maturities of five to 10 years.
"We will be aiming for Moscow's yields," he said.
The Russian capital has issued 39.4 billion roubles in bonds so far in 2010, including April's issue with a 7.58 percent yield, and plans to raise a further 104.4 billion.
News source: Reuters
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