Russian Finance Ministry swaps Soviet debt for eurobonds

By Reshmi Basu

New York, March 16 - The Russian Ministry of Finance said it has completed the exchange of eurobonds due 2010 and eurobonds due 2030 for a portion of the Soviet debt owed to the International Investment Bank (IIB) and the International Bank for Economic Co-operation (IBEC) by the Bank for Foreign Economic Affairs of the USSR (Vnesheconombank), according to a news release.

The ministry said that debt to IIB and IBEC of $905.7 million was exchanged for $899.8 million in Russian eurobonds.

The ministry issued $118.3 million in dollar-denominated eurobonds due 2010 and $781.5 million in bonds due 2030.

Related to the offering, IBEC and IIB closed on their simultaneous offers to swap certain liabilities of Vnesheconombank for the same amount of IBEC and IIB debt held by IBEC and IIB's foreign creditors.

Tendered IBEC and IIB debt of $426.6 million principal amount was exchanged for $54.1 million principal amount of bonds due 2010 and $354.7 million principal amount of bonds due 2030. Participating foreign creditors of IBEC and IIB will receive $31.8 million and $28.4 million in cash, respectively.

The ministry issued bonds due 2010 and bonds due 2030 for the outstanding debt owed by Vnesheconombank to IIB. The ministry issued $64.3 million of 2010 bonds and $426.8 million of 2030 bonds for $479.1 million of Vnesheconombank debt.

IIB will receive $47.2 million in connection with the exchange.

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