The transition from dollar to euro-based bonds has helped Russian banks back to the bond market, writes Deutsche Wirtschaft Nachrichten. Russia wants more independence from U.S. currency also because of the U.S. sanctions. The Russian Euro-bonds were well received by investors and analysts call them a major success. Now, the hope is that more Russian companies are again the road to the global capital markets – if tensions in Ukraine become smaller.
Sberbank, Russia’s largest credit bank, sold last week bonds worth 1 billion USD to test the appetite of investors after the Crimean crisis. Short time later Gazprombank sold euro bonds for the same amount.
Russia has thus this month already placed more bonds than overall in March, April and May. The volume of bonds fell in March to only 198 million USD after economic sanctions against Russia were introduced by the United States. In June the marked had recovered and bonds for more than 2.1 billion USD have been sold..
Simon Ollerenshaw from Barclays said that the bonds were very well received, “There is an appetite for Russian bonds, but the continuing trend is dependent on the headlines. Markets observe a possible escalation in Ukraine – if the headlines are changing again, also the mood will change”, he told the newspaper industry FT.
According to analysts, the idea to issue the first bonds since the Crimean crisis in Euro was an expression of a political desire for greater independence from the U.S. dollar.
Source: Deutsche Wirtschaft Nachrichten / russland.RU – Internetzeitung