Ruble Bond Debut to Cut Yield on Foreign Demand: Russia Credit
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Russia’s plan to lure international investors to ruble securities through its first overseas sale of local-currency debt may reduce borrowing costs as bondholders snap up emerging-market securities.
The government may sell as much as $3 billion of ruble bonds with maturities of up to five years, Deputy Finance Minister Dmitry Pankin said Sept. 8. The yield may be about 25 basis points below the rate on Russia’s domestic bonds known as OFZs, according to Sergey Dergachev, who helps manage $6 billion of emerging-market debt at Union Investments in Frankfurt, and Paul McNamara at Augustus Asset Managers Ltd.