Russia plans to issue $44bln worth of OFZ bonds in 2022 -document

The share of domestic debt in Russia's total state debt will rise to 82.2% in 2024

  
Russian rouble banknotes are seen in this illustration picture taken in Moscow, September 30, 2014.

Russian rouble banknotes are seen in this illustration picture taken in Moscow, September 30, 2014.

REUTERS/Maxim Zmeyev

MOSCOW- Russia plans to sell some 3.18 trillion roubles ($44 billion) of rouble-denominated government bonds in 2022, a slight increase from this year, and such issuance is set to reach nearly 4 trillion roubles in 2024, a document seen by Reuters showed.

The finance ministry borrowed a record 5.3 trillion roubles in 2020, as economies were battered by the coronavirus pandemic and prices for oil, Russia's primary export, tanked.

OFZ treasury bonds, which Russia uses to plug budget holes, have regained popularity among foreign investors as concerns about further international sanctions have waned. Some also expect their prices to rise higher once the Russian central bank starts cutting rates, probably at some point next year.

The finance ministry initially planned to borrow 3.67 trillion roubles on the domestic market this year, but decided to reduce that target by 875 billion roubles in the spring.

In 2023, the finance ministry will issue OFZ bonds worth 3.3 trillion roubles, with the amount rising to 3.92 trillion roubles in 2024, the document, a supplement to the draft budget, showed.

Russia is set to redeem 1.06 trillion roubles in OFZ bonds next year, 772 billion roubles in 2023 and another 1.45 trillion roubles in 2024, the document showed.

The share of domestic debt in Russia's total state debt will rise to 82.2% in 2024 from 80.2% in 2022.

As in previous years, the finance ministry may annually issue the equivalent of $3 billion worth of Eurobonds over the next three years.

($1 = 72.8200 roubles)

(Reporting by Darya Korsunskaya and Gleb Stolyarov; Writing by Alexander Marrow) ((alexander.marrow@thomsonreuters.com;))


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