Bank of Moscow, the Russian lender controlled by the city’s government, plans to sell two-year bonds denominated in Singapore dollars, according to a person familiar with the deal.

The bank will sell as much as 200 million dollars of the debt to yield around the 4.375% area, according to a person familiar with the proposed issue. The notes may be sold as early as this week, said the person, who declined to be identified as details are yet to be made public.

Bank of Moscow may be seeking cheaper sources of funding outside Russia after central bank Chairman Sergey Ignatiev said the regulator could raise key interest rates as soon as next week to combat inflation. Singapore’s CapitaMalls Asia, a unit of Southeast Asia’s biggest developer, sold 125 million dollars of debt due 2014 on Jan. 21 with a coupon rate of 2.15%. Standard Chartered Plc’s 220 million dollars of bonds maturing 2013 had a coupon rate of 2.22% when sold in July.

 

ING Groep NV and UBS AG will help manage the Bank of Moscow sale, according to a statement e-mailed by the lender Jan. 24.