Russia Nears Sale of Eurobond
LONDON--Russia could sell its first Eurobond since it defaulted on its domestic debt in 1998 in the coming days, people familiar with the matter said.</br></br>The investment-grade nation intends to offer both five-year and 10-year debt, those people said. Initial talk is that the five-year paper could yield about 1.25 percentage points above U.S. Treasurys and the 10-year tranche could yield about 1.375 percentage points over Treasurys, one investor said.</br></br>Investors have said they expect Russia to raise between $3 billion and $5 bilion.</br></br>Meetings with prospective investors are due to finish in New York Wednesday, with pricing expected thereafter, subject to market conditions.</br></br>The Russian government is returning to the international bond markets to plug holes in its budget, which is expected to have a deficit worth 6.8% of gross domestic product this year.