Interview by Andrey Solovyev, Global Head of DCM at VTB Capital, for Bloomberg
Thursday, 2 October
Many companies already want to sell Eurobonds but my feeling is that, realistically, they’ll be able to do it not earlier than” Q1 2015, Andrey Solovyev, Global Head of DCM at VTB Capital, said in an interview in Moscow yday. “Even if there aren’t any constraints, many investors won’t be buying Russian assets straight away.”
Banks were among the first to return to ruble bond issuance in Sept. because lenders are “more sensitive” to mkt situation, understand “new reality” of higher yields.
MinFin resumed OFZ auctions because it understands “new normal” yields are higher; sent signal to other Russian borrowers.
Reason why more Russian cos. aren’t borrowing in yuan is because Asian mkts are “narrow and short-term;” “you can’t make a big issuance there”.
VTB Capital has been working with Chinese companies on bond issuance in light of “political rapprochement;” managed 4 Eurobond deals by Chinese issuers since May.
“One of the ways of compensating for the drop in bond issuance in Russia is through going beyond Russia’s borders;” this year helped organize Cyprus sovereign Eurobond, SPP-Distribucia Eurobond.