Sberbank, Russian Agricultural Offer Dollar Bonds as Yields DropLyubov Pronina
OAO Sberbank, Russia’s largest lender, and OAO Russian Agricultural Bank are offering dollar bonds after borrowing costs for emerging-market issuers fell.
Sberbank is marketing $1 billion of 10-year securities redeemable in five years and Russian Agricultural Bank is selling $500 million more of its July 2018 bonds, according to people familiar with the transactions, who asked not to be identified because the information is private. OAO Gazprom, the world’s biggest producer of natural gas, was planning to meet investors this week about a euro-denominated offering, a person with knowledge of the deal said.
“EM sentiment is much better,” Richard Segal, a strategist at Jefferies International Ltd. in London, said in an e-mail. “They can get ahead of the crowd and be among the first Russian borrowers before everyone else lines up.”
The average yield for emerging-market corporate dollar bonds has fallen 17 basis points from an almost four-month high on Feb. 3 to 5.29 percent yesterday, according to Bloomberg indexes.
Sberbank is offering bonds at a yield of 5.5 percent, while Russian Agricultural Bank’s securities are selling at 4.7 percent, the people said.
OAO Russian Railways will wait for currency markets to stabilize before selling a Eurobond, RIA Novosti reported today, citing company Chief Executive Officer Vladimir Yakunin.