Russia & CIS
Renaissance Capital has in the past two years overseen and participated in a significant volume of DCM deals out of Russia and the CIS, positioning itself as one of the top dealmakers for Russian corporates looking to tap the international markets. Dmitry Gladkov, the Global Head of Financing at Renaissance Capital, shares his assessment of the market and the bank’s role in it, as well as his vision of where the investment bank sees the biggest growth opportunities in the coming months.
The Central Asian Republic saw 9x peak oversubscription and impressive yield tightening of nearly 900bp with its inaugural Eurobond transaction to source funds for the construction of the world’s tallest dam.
Just a few years ago, barely any debt capital markets investors would have paid much attention to regions like Central Asia and the CIS. Yet with overwhelming demand for sovereign notes issued by the likes of Belarus and Tajikistan, regular issues from Kazakhstan and a highly anticipated debut Eurobond from Uzbekistan, the region is putting itself on the EM fixed income map.
Driven by the need for greater transparency and efficiency, blockchain is making its first inroads into the capital markets and bank operations more broadly. The technology could be a gamechanger for emerging markets, according to CFOs and analysts.
Promsvyazbank, one of a number of large private lenders to be taken under the government wing over the past year, is set to assume an unusual role of the Russian military’s main coffer. Manulife senior analyst Richard Segal considers the prospects of such a specialized lending institution in a challenging landscape of sector consolidation and international sanctions.
As Russia re-emerges from the sub-investment grade mire, Ashmore's Head of Research Jan Dehn questions the sensibility of the original downgrade and, more broadly, the approach credit rating agencies take on assessing sovereign risk.
CASE STUDY: Credit Bank of Moscow Achieves Tightest Coupon for Russian Private Financial Institution
Russia’s second largest private lender defied the difficult market environment and negative sentiment in the sector to achieve the lowest coupon for a Russian financial institution and a well-balanced orderbook of investors.
After a traumatic few years catalysed by the annexation of Crimea and the ensuing civil conflict with its easternmost regions, Ukraine has developed a certain degree of flexibility in managing a series of shocks encountered since. But a lack of progress on crucial reforms, political mismanagement, and consistent lack of access to credit for key sectors like agriculture threaten the progress achieved so far.
Brown Brothers Harriman: 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.
- Eurotorg CIO: ‘DCM debut positions us well for more deals’
- ACRA, Russia’s Credit Rating Revolution, and Red Herring Reform
- EuroChem Focussed on Latin America, Asia as Fertilizer Industry Recovers
- Russia, CIS, Europe & Turkey Credit Markets Brief: 02 November – 16 November
- Bank of Georgia Group CEO on Deepening Local Currency Markets
11 Apr 2018