Russia's 1st sale of floaters in decade fails after S&P cut - Chicago Tribune

Russia's 1st sale of floaters in decade fails after S&P cut - Chicago Tribune:



"Russia missed its fundraising target for a second week, raising only half of the amount planned at its first sale of floating-rate debt in more than a decade, two days after a sovereign credit-rating downgrade.



The Finance Ministry placed 2.51 billion rubles ($37 million) of the securities maturing in December 2017 at a weighted average price of 95.9602 of face value, according to data compiled by Bloomberg. It filled 24 bids, the data show, after the ministry said Tuesday it would seek to raise 5 billion rubles.



The first attempt to sell floating-rate securities since November 2004 came after Standard & Poor's cut Russia's foreign- currency rating to junk on Monday, while pushing the local- currency score to the lowest investment grade. Russia's ability to raise cash is being curtailed as European Union and the U.S. consider additional sanctions in technology, energy, defense and banking over the country's support for separatist rebels in eastern Ukraine."



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