Belarus to float forex bonds worth $100m on 28 August

       The Finance Ministry of Belarus will arrange a stock exchange auction to float forex government bonds worth $100 million on the Belarusian Currency and Stock Exchange on 28 August. The face value of one government bond is $10,000; the redemption date is 29 August 2016. The interest rate is 6.85%. Market applications will be restricted to 30% of the total number of applications submitted by auction participants. The bottom price that can be indicated in the applications is $10,000. The Belarusian government resumed the floatation of forex government bonds in November 2012 after the ban on the secondary circulation of forex government bonds on the home market was lifted. The ban was introduced in 1999. The government also gave the Finance Ministry more powers regarding the initial offer of forex government bonds.
Thanks to that, the Finance Ministry is now able to directly sell forex bonds to legal persons and hold IPOs via stock exchange auctions. The instructions adopted in February 2013 authorized the Finance Ministry to do placement and additional placement of forex government bonds.
       The Belarusian Finance Ministry plans to float government bonds worth about $500 million at most on the home market in H2 2013. Some $400 million worth of bonds will be offered to corporations and $100 million worth of bonds to individuals.