- State Transport Leasing announces roadshow for debut Eurobond
- ‘Handful’ of deals in works by top emerging-market underwriter
More Russian companies are set to follow steelmaker Evraz Plc to the Eurobond market to avoid colliding with deepening political risk triggered by November’s U.S. election, according to the biggest underwriter of emerging-market bonds.
“We do see a healthy issuance appetite from borrowers in Russia and expect to announce a handful of deals prior to the U.S. election, most of them in September,” said Stefan Weiler, JPMorgan Chase & Co.’s London-based head for debt capital markets for central and eastern Europe, the Middle East and sub-Saharan Africa. The bank claimed a 10.5 percent market share of underwriting developing-country debt in the first half.
Evraz, Russia’s second-biggest steelmaker, was among three issuers that raised almost $2 billion earlier this month as a rebound in oil and monetary easing by Russia’s central bank boosts demand for the nation’s debt. On Thursday, State Transport Leasing Co. picked JPMorgan along with Renaissance Capital, UBS Group AG and VTB Capital to organize meetings next week in London and Europe to gauge investor appetite for bonds.
While State Transport is mulling its first Eurobond, other Russian companies may raise money while rates are low to prefinance $58 billion of debt maturities in 2017 and 2018, the legacy of a borrowing boom that preceded sanctions over the Ukraine conflict.
The average yield for Russian corporate Eurobonds fell to 5.76 percent Thursday, the lowest since October 2013, just months before the U.S. and European Union banned some of Russia’s biggest companies from accessing foreign capital markets.