Economics

Russian Bank’s Rupee Funding Needs Seen Testing Debt Demand

  • Sberbank rupee program for branch gets top rating on support
  • Parent’s 2023 bond yield reaches all-time low as sales dry up
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Russia’s biggest lender may sell the first rupee-denominated debt from the nation ever, in a test of appetite for foreign-currency bonds from the country that are in short supply due to sanctions.

Sberbank PJSC unveiled the program to sell 1 billion rupees ($15 million) of certificates of deposit this month, according to India Ratings & Research Pte, the local unit of Fitch Ratings, which accorded the money-market instrument its highest score of A1+. "In order to support our rupee denominated lending and avoid significant foreign currency exposure we have to match it with local currency funding," spokeswoman Anastasia Vakhlamova said by e-mail on Aug. 10, without confirming any CD program.