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8.5 Fixed income
Russia’s domestic bond market is still growing with RUB10 trillion of bonds outstanding as of the start of July. The Ministry of Finance has already raised about two thirds of its planned borrowing for this year.
The sell of Russian Ministry of Finance ruble-denominated OFZ treasury bills during the worst of the panic months starting in May has been modest and the market has already stabilized.
The foreign share of OFZ has fallen from a peak of 34.9% of the total outstanding bills in March to 30.6% of July 1, or a total of RUB3,068bn, but while the share of the total has slipped slightly the total volume held by foreigners is still up from the RUB2,850bn they had on January 1.
8.5.1 Fixed income - bond news
The creditors of coal and electricity holding DTEK Energy (DTEKUA)
“are pushing back on almost all of the company’s proposed restructuring terms,” Reorg Research, a distressed debt information provider, reported on July 28, citing its anonymous sources. Of particular concern is DTEK Energy's plan to extend the ultimate maturity of its loans to related DTEK Oil & Gas till 2030 (from 2024, as has been scheduled). Creditors view such an extension “as unnecessary,” Reorg reported. As of end-2019, loans due from DTEK Oil & Gas amounted to USD 487 mln, which is 25% of DTEK Energy’s total financial debt and 36% of Eurobonds outstanding.
74 RUSSIA Country Report August 2020 www.intellinews.com
