(Changes source to finance ministry, adds detail, organiser'scomment)MOSCOW, March 21 (Reuters) - Russia raised $3 billion in anew dollar-denominated Eurobond and 750 million euros in atop-up issue of an existing euro-denominated Eurobond, thefinance ministry said on Thursday, tapping the global bondmarket for first time this year.Russia capitalised on favourable market conditions and aglobally increased investor appetite for risky assets amidsomewhat lower concerns about new U.S. sanctions that couldpossibly target Russian state debt.The Eurobond placement comes after Moody's Investor Serviceupgraded Russia's sovereign rating last month, so that it is nowrated investment grade by all three big international ratingagencies.Russia sold dollar-denominated Eurobonds maturing in 2035with a yield of 5.1 percent, while setting a yield foreuro-denominated papers maturing in 2025 at 2.375 percent , the finance ministry said.Demand for the dollar bond had reached more than $7 billion,while bids for the euro issue exceeded 3 billion euros, afinancial market source said on Thursday.The dollar Eurobond became the largest issue for the financeministry since 2013, said Andrey Solovyov, Global Head of DebtCapital Markets at VTB Capital, one of the bond placementorganisers.Investors from Britain bought 55 percent of thedollar-denominated issue, while 21 percent was bought by U.S.investors, 8 percent by Europeans and 11 percent by Russianinvestors, Solovyov said.Among buyers of the euro-denominated Eurobond, Britishinvestors accounted for 40 percent, European investors bought 18percent, U.S. investors - 17 percent. Russian investors bought18 percent of the issue, Solovyov said.Facing strong demand, Russia lowered its yield guidanceduring the day from around 5.5 percent and 2.625 percent setinitially.Alfa Bank said Moscow's decision to tap the Eurobond marketreflected a "burgeoning appetite for riskier assets (which)eclipses the continued threat of U.S. sanctions".
Global demand for emerging market assets picked up after theU.S. Federal Reserve adopted a dovish tone after its policy
meeting on Wednesday.
The finance ministry had selected lenders VTB Capital, aunit of VTB , and Gazprombank to organiseits 2019 Eurobond issuance.In November last year Russia raised 1 billion euros ($1.14billion) via its first euro-denominated Eurobond sale in fiveyears, paying a yield of 3.0 percent. Russia's central bank said this month that foreigners hadincreased their holdings of Russian Eurobonds in February, aswell as in OFZ treasury bonds. Demand for these bonds serves asa gauge of market sentiment toward Russian assets. ($1 = 0.8770 euros) (Reporting by Tatiana Voronova, Andrey Kuzmin, Oksana Kobzeva,Andrey Ostroukh and Darya KorsunskayaWriting by Andrey Ostroukh and Gabrielle T?(C)trault-Farber;Editing by Catherine Evans and Frances Kerry)
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