Russia launches ruble-denominated eurobond

Russia launched its debut ruble-denominated eurobond Thursday after initially delaying the sale amid last year''s European deficit crisis. The state-run RIA Novosti news agency said the government placed 40 billion rubles ($1.4 billion, 1.0 billion euros) of seven-year bonds yielding 7.85 percent.
The sale was delayed after European markets demanded higher yields as a result of last year''s eurozone debt and deficit crisis sparked by budget woes in Greece and several other European countries. The eurobond is Russia''s second since April 2010 - a year that saw Russia run its first budget deficit in 10 years. That placement, however, was denominated in dollars. Strong demand for that offer prompted the Russian government to make the next sale in rubles and initially plan the issue for November 2010.