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investor in Belarus’ bonds suggests that these investors remain very interested in high yields but also confirm the rising interest in frontier markets.
“In 2011, when Minsk made its debut on the international capital markets with a $0.8bn, 7y Eurobond issue, 33% of the paper went to UK accounts, 19% to German, Austrian and Swiss investors, 13% to Russian investors, and only 22% to US accounts. This distribution also reflected the fact that until 2017 Belarus issued paper only in Reg S format,” says Golinsky.
“The situation changed in June last year, when the Finance Ministry placed a total of $1.4bn in two Eurobond issues. The favourable global liquidity situation and the significant size of the placements, a record for Belarus, attracted the attention of new investors, including some from the US,” Golinsky adds.
Today, global investors' understanding of Belarus's credit profile is better than it has ever been. This has been prompted not only by the country's primary market activity but also by the authorities' effective communication with market participants. Both of these factors are being positively reflected in the issuer's credit spreads.
7.0 FX
Source: National Bank of Belarus
Belarus -FX 2011 2012 2013 2014 2015 2016 2017
Currency (units per USD) (eop) 0.8350 0.8570 0.9510 1.1850 1.8569 1.9656 2.029
Currency (units per EUR) (average)
0.8051 1.0778 1.1834 1.3220 1.7828 2.2005 2.1783
Currency (units per USD) (average) 0.4975 0.8337 0.8880 1.0224 1.5926 1.9885 1.9318
30 BELARUS Country Report February 2019 www.intellinews.com