Leading global law firm Baker McKenzie LLP has advised the Ministry of Finance acting on behalf of the Russian Federation in connection with a dual-tranche Euro-denominated Regulation S only Senior Unsecured Transaction. The deal consists of new 15-year benchmark €1 billion 2.65% Bonds due 2036, and a €500 million tap offer of 1.125% Bonds due 2027 to be consolidated with and form a single series with the previously issued €750 million 1.125% Bonds due 2027. The Bonds are listed on the Regulated Market of Euronext Dublin.
Petr Kazakevich, Director of the State Debt and State Financial Assets Department of the Russian Ministry of Finance, noted that the highly professional support provided by the Baker McKenzie team gave both the issuer and the investors the necessary confidence in the legal aspects of the transaction.
Dmitry Dembich, partner in the Banking and Finance practice at Baker McKenzie in Moscow commented, "We are delighted and honoured to have had the opportunity to assist the Ministry of Finance of Russia on this benchmark offering of sovereign bonds. This representation reflects the leading position of Baker McKenzie in advising Russian borrowers on international debt capital markets transactions."
The Baker McKenzie team was led by the capital markets practice in Moscow including lead partner Dmitry Dembich, associate Polina Govkelevich and trainee Gulnazira Magadeeva. Support came from the London capital markets team of partners Roy Pearce and Adam Farlow and special counsel Roger James. Tax advice came from Moscow partners Kirill Vikulov and Sergei Zhestkov. Moscow partner Vladimir Efremov and New York partner Terence Gilroy provided further specialist support with respect to international trade sanctions.
The deal with the Ministry of Finance is the latest in a string of transactions Baker McKenzie has advised on in the CIS sovereign space in 2021 following offerings by Georgia and Armenia, and underlines the size and continued growth of the Firm’s Debt Capital Markets presence in the region.
Other recent transactions from Russia and the region include representation of the lead managers in connection with an offering of US$350 million 5.5% subordinated loan participation notes due 2031 by Alfa-Bank under its US$5 billion EMTN programme, representation of Eurasian Development Bank, a multinational development bank, in connection with an update of its US$3.5 billion EMTN programme and an offering (of €300 million 1.0% Notes due 2026 thereunder and representation of the lead managers in connection with an offering of social bonds in the form of US$300 million 3.4% Loan Participation Notes due 2025 by Sovcombank, which was the first-ever Social Bond Offering by a Russian financial institution.