Belarus has floated $600 million worth of eurobonds, with a maturity of five years, Finance Minister of Belarus Andrei Kharkovets told media on 27 July.
According to the minister, bond yield is 8.75%. "It meets the assessment of the whole market. Politics do not dictate here. This is an assessment of the investors," he said.
Standard & Poor's agency affirmed Belarusian bonds at B+. "This is a preliminary rating. It can be further changed. This is a standard assessment,"Andrei Kharkovets said.
As for potential bond buyers, according to the minister, many investors are interested in Belarusian eurobonds. "Among them is Europe, Asia, South and North America, Israel," he said.
Belarus’ Council of Ministers has been authorized to implement in the years 2010 to 2011 eurobond issues amounting to $2 billion, with a maturity of at least five years and floatation abroad.
The decree was okayed in order to attract foreign investments in the Belarusian economy. The government has been vested with the authorities to approve the emission prospect of each issue of bonds to the tune of $2 billion and the agreements related to the issue, floatation, circulation and retirement of bonds.
In line with the document, foreign issuers of the Belarusian bonds are exempted from income tax. The tax will not be levied from the revenue collected from the services related to the issue, floatation, circulation and retirement of bonds. The commissions, compensations and other expenses regarding the issue, floatation, circulation and retirement of bonds are paid out from the funds of the national budget that are envisaged for serving the external public debt.
The ceiling of Belarus’ external public debt has been raised by $1.5 billion to $11 billion to the end of 2010.
