Page 75 - RusRPTOct19

The ministry is now offering only longer term bonds and is squeezing yields lower. Having started the year at 9% yields are down to below 7% as of the start of September.
On the broader Eurobond market there was were almost no issues at all
in the CIS. The Russian broker/dealer BCS Global Markets continue to issue small bonds of between $5mn and $15mn as it has done almost every month this year, but there were no other issues at all in August.
The Finance Ministry and the state mortgage agency DOM.RF have agreed on the road map for development of mortgage bonds, with the new instrument of over RUB7 trillion ($106bn) potential value to be guaranteed by the state corporation, Kommersant daily reported on September 9 citing unnamed sources. As reported by bne IntelliNews, in June the Finance Ministry and the Central Bank of Russia (CBR) said they were developing mortgage bonds and count on solid demand for the instrument. "As the mortgage [interest] rates go down, the banks are facing balance limitations, first and foremost in terms of capital. Mortgage bonds could solve this problem," Deputy Minister Alexei Moisseev said at the meeting of the Association of Banks of Russia (ABR). The intention behind the bonds is to allow the banks to securitise mortgages in order to easier comply with the Kremlin's goal of bringing the mortgage interest rates down to 8% by 2024. Reportedly DOM.RF will be the sole issuer of single-tranche bonds that will collateralise the mortgage portfolios of the banks. Currently the biggest issuers of such bonds are state-controlled banks Sberbank and VTB that have RUB321bn and RUB195bn worth of issues with DOM.RF, respectively.
75 RUSSIA Country Report October 2019 ww.intellinews.com