A road and bridge project in Saint Petersburg, lead by Russia's No.2 lender VTB will postpone a planned bond issue worth 15 billion roubles ($479.46 million) until next year, the head of the city's finance department said on Thursday, Reuters reports. The decision follows Russia's state development bank VEB's move to postpone a Eurobond offering due to poor market conditions, partially due to nerves over the political fallout of Sunday's parliamentary election.
"It is necessary to borrow another 15 billion roubles (for the project) but we have decided to postpone it until next year, we will not jostle with others," Eduard Batanov told a Cbonds conference.
The project envisages a 47-kilometre urban motorway between the St Petersburg port on the Gulf of Finland and the city's ring road aimed to address traffic hurdles.
"I guess that the existing problems this year are quite obvious," Batanov added.
Global risk aversion, fueled by poor growth and debt problems in the euro zone and elsewhere, has created tough conditions for emerging market borrowers in the second half of 2011.
Investors have also been unnerved by the images of street protests against the results of elections which put ruling party of Prime Minister Vladimir Putin's party back in power with a reduced majority.
"It is necessary to borrow another 15 billion roubles (for the project) but we have decided to postpone it until next year, we will not jostle with others," Eduard Batanov told a Cbonds conference.
The project envisages a 47-kilometre urban motorway between the St Petersburg port on the Gulf of Finland and the city's ring road aimed to address traffic hurdles.
"I guess that the existing problems this year are quite obvious," Batanov added.
Global risk aversion, fueled by poor growth and debt problems in the euro zone and elsewhere, has created tough conditions for emerging market borrowers in the second half of 2011.
Investors have also been unnerved by the images of street protests against the results of elections which put ruling party of Prime Minister Vladimir Putin's party back in power with a reduced majority.