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Russia & CIS

After depleting funds, Russia to focus on local and Asian borrowing

Russia’s reserve fund will be depleted early next year, and although there are plans to tap the welfare fund, it is unlikely to be a suitable alternative. Foreign financing will still play a role in the government’s future funding plans, but with much more focus on Asia and particularly China, and the government also plans substantial local issuances which will likely be very well received due to…

13 Oct 2016

Russia forays into bond markets as liquidity woes ease

Russia’s strengthening presence on the bond markets marks a gradual recovery, with banking sector liquidity woes premature, observers say.

10 Oct 2016

Kazakhstan and Russia announce US$4bn deal on 25 projects

Russia and Kazakhstan have reached an agreement on bilateral strategic development which will see the two Eurasian Economic Union (EEU) members jointly invest around US$4bn in a number of economic projects. More deals worth around US$27bn are expected to be finalised at the inter-regional cooperation forum in Astana, but some are sceptical that either side is willing to commit to them fully.

5 Oct 2016

Russo-Chinese settlements platform set to strengthen bilateral cooperation

The development of a Russo-Chinese debt settlement platform to counter those in the West will increase bilateral cooperation between the two countries, but with some Chinese capital controls still in place setting up the platform will likely take further time.

28 Sep 2016

CASE STUDY: Sovcomflot Tests Waters With Eurobond

Sovcomflot, one of the world’s largest shipping companies which specialised in harsh environment operations, issued a US$750mn Eurobond at a time when there was increased interest from Russian corporates in accessing the international markets alongside interest from foreign investors who were looking to gain exposure to rare Russian assets.

23 Sep 2016

Strong fundamentals, scarcity to drive demand for Russian sovereign bond

Despite Western sanctions and low oil prices, scarcity, a stabilising political environment and improving underlying fundamentals are likely to drive strong demand for Russian sovereign debt through next year.

16 Sep 2016

Rouble-Eurobonds to be hampered by sanctions

Despite clear demand for Russian rouble-denominated paper amongst the international investment community, US and EU sanctions would prevent many issuers from tapping international markets. Entities that can access dollar markets will do so despite reduced pools of liquidity, whilst the local markets will remain the preserve of sanctioned entities.

14 Sep 2016

VEB aside, Russia’s ‘turn to the east’ more hot air than not

Russia’s VEB is looking eastwards for funding, a move which came just after a fresh round of sanctions from the US. Although there is significant rhetoric around a turn to the east for Russia, it appears more political as many Russian corporates and indeed the sovereign have issued dollar bonds this year.

6 Sep 2016

Russian local market liquid and hungry

Russia’s local bond market remains highly liquid as the country’s economy continues to improve. The depth and appetite of the domestic market means that although sanctioned companies are not allowed to borrow from international investors, surging demand for local currency debt is seeing their bonds price closely to those of non-sanctioned Russian entities.

25 Aug 2016

Too soon to tell if Russo-Ukrainian tensions will affect Russian bonds

Tensions between Russia and Ukraine are on the rise again, with the markets reacting negatively to an escalation before the weekend, though tempers seem to be settling. This has again been reflected in the markets, with the Russian rouble outperforming other EM currencies early this week. At this stage tensions are also unlikely to impact the Russian bond market, and any effect would likely be in…

15 Aug 2016

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