News In Brief

Soviet bank to float bonds Western capital markets

The London-based Moscow Narodny Bank launched a $50 million bond issue Wednesday in what is thought to be the first ever foray into the Eurobond market by a Soviet borrower, and the first such issue for foreign investors since the Russian Revolution in 1917.

Lenders will be asked to subscribe to the bond over seven years at a floating rate of interest that will carry a margin of 3/16 percent over the six-month London Interbank Offered Rates (LIBOR).

The issue, however, was likely to attract criticism from holders of Czarist bonds issued by Russian governments before the 1917 revolution, bond managers said. The new Soviet government repudiated this debt in 1918 and the bonds remain in default.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK