Russia looks to bond market to close deficit

Russia is set to launch a series of government bonds in an effort to close its budget deficit - marking the first time the country has tapped the bond market for a decade.

According to reports, 20 investment banks - including Goldman Sachs, Deutsche Bank, Barclays Capital and JP Morgan - are set to bid for the euro-denominated bond mandate. The request for proposals is understood to have been sent out last month by the Ministry of Finance. The move follows plans recently outlined by Moscow to issue in the region of $18bn of euro-denominated bonds to help close the country's first budget deficit in nearly a decade. But some analysts believe a much smaller amount of gilts will be issued. The new issue, comprising securities with 10-15 year maturities and ...