Russia & CIS
BBH produced the following ratings model to assess relative sovereign risk in Frontier Markets. A country’s score directly reflects its creditworthiness and underlying ability to service its external debt obligations.
Over the past three years, the Central Bank of Russia has done an impressive job of staving off financial crisis while continuing to consolidate the country’s bloated banking sector. But as the state’s share in the sector approaches 70%, questions are being asked about the sustainability of its approach and the risks for private lenders, particularly those headquartered abroad.
Bonds & Loans speaks with Andrei Matsiavin, Chief Investment Officer at Eurotorg, a leading Belarusian food retailer, about the company’s hugely successful cross-border capital markets debut – which was also Belarus’ first international corporate Eurobond sale.
Many foreign credit rating agencies – the Big Three in particular – balked when the Russian government tightened controls on the regulation of credit rating agencies, a move intended to bring more transparency to the sector and eliminate conflicts of interest. Borrowers, analysts and investors are sceptical about the rules’ ability to deliver on its stated goals.
Over the past year, Russian fertilizer giant EuroChem Group AG has made great strides in opening new markets, tapping the growing demand in Asia and Latin America, and spending over USD6bn on two mines to produce potash, a high-quality soil fertilizer. Bonds & Loans catches up with the company’s CFO Andrey Ilyin to discuss the industry outlook, the company’s financing plans for 2018, and how it plans to diversify into new regions.
Petropavlovsk sold USD500mn of fresh debt –– PSB gets downgraded – Rosneft’s shares take a hit due to Venezuelan crisis – Venezuela and Russia agree on debt restructuring –ABLV placed USD40mn of unsubordinated notes – Belarus to issue USD600mn next year – The government to support Turkey’s export sector
Bonds & Loans speaks with Irakli Gilauri, CEO of BGEO Group about the company’s funding strategy, its first – and the country’s first – local currency Eurobond, and how other emerging market corporates can help deepen demand for local currency assets.
Rosselkhozbank to issue perpetual bonds – Petropavlovsk preparing its bond market debut –Croatia to hold a repo auction – Moldova cuts interest rates – Eurotorg issues Belarus’ first corporate bond – Greece to tap the international markets again – BOE hikes rates for first time since August 2016 – Relations between Turkey and the EU continue to deteriorate
Western sanctions against Russia could stay in place for the next 10 years – Russia Railways issued a RUB15bn bond – Belarus could face further rate cuts – Kazakhstan’s Central Bank to sell USD1bn in assets – Hungary tapped the markets with 10-year notes – Diplomatic tensions take a toll on Turkey’s assets – Tupras sold USD700mn of fresh debt
The final piece of the Rosneft-privatization puzzle appeared to fall into place, as initial investors Glencore and QIA agreed to sell the majority of their stake, purchased in December last year, to a little-known Chinese oil company. Yet the wider implications of the deal for the oil market and Sino-Russian ties are still unclear.
- Russia, CIS, Europe & Turkey Credit Markets Brief: 21 September- 5 October
- Newsworthy Times for Russia’s Private Banks
- Russia, CIS, Europe & Turkey Credit Markets Brief: 7 September – 21 September
- Emerging Market Credit Daily Roundup: 7 September, 2017
- Russia, CIS, Europe & Turkey Credit Markets Brief: 24 August - 07 September
15 Feb 2018