Tuesday, January 23, 2018

Russian banks are in no hurry to leave following the discovery of the Eurobond market at current rates

Russian banks are in no hurry to leave following the discovery of the Eurobond market at current rates

Russian bankers have seen significant interest from investors and the organizers of the new placement of Eurobonds, but they say that are not going to use this opportunity to enter the market at the current rate levels.

"Over the past two months, I received a lot of proposals from investment banks for a meeting on the possible organization of Eurobonds for our bank. They see a great interest on the part of older investors who are sitting in our bonds, and from the new pool, which would like to buy"- said at the conference on Wednesday, Fitch predpravleniya Moscow Credit Bank (ICB) Vladimir Chubar.

"But this is more a matter of rates ... Those rates, which we would like to see non-residents are not satisfied with colleagues. Therefore, the basic problems are not present, if you wish to go to the market as possible, the question is only in the rates", - he said.

This week, the largest private bank in Russia Opening of FC started the road show of the new issue of Eurobonds in US dollars for up to 3.5 years, the deal could be the first issue of Russian bonds this fall.

Opening of entering the market in order to diversify funding and replacement of dollar funding from the CBR, analysts say.

Other private banks of the Russian Federation in no hurry to follow his example:

"Great expectations of our investors that we will return to the market, but as spreads continue to decline, we have to wait a certain desire and see where this trend will lead us", - said deputy chairman of Alfa Bank, Aleksey Chuhlov, noting that the money is now more profitable to borrow domestically.

"We are very cautious pricing, watching, thinking, meet, reflect".

Senior director of analytical group on sovereign ratings agency Fitch Paul Gamble said today that international capital markets are open to new placements of Eurobonds of Russian issuers.

"Of course, the market is open ... expectations among investors for yield dropped significantly, we have come today to the spreads that are lower than pre-crisis levels in relation to sovereign bonds, and this is due not so much to the improvement of the economic situation in Russia, in my opinion, as to the context in Europe and the capital markets in general,"- Chuhloma said.

Andrey Solovyev, head of debt capital markets at VTB Capital, said in an interview with Reuters that he had discovered in the Eurobond market opportunities primarily take advantage of the real sector, while banks will "a little harder"

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