Page 83 - RusRPTApr19
P. 83
foreign investors.
The corporate Eurobond issuance in the first quarter beats the last three quarter of 2018 taken together, but is still behind 10 issues worth $5.11bn seen in the first quarter of 2018. Most recently Evraz metals major also announced an upcoming issue.
Russian ruble-denominated bonds have earned about three times more than its EM peers so far this year, but foreign investors are still leary of Russian paper as the threat of new sanctions make political risk high and unpredictable.
The optimists have driven a rally that’s seen ruble-denominated bonds deliver a 7.5% return so far this year, even after the US Senate renewed a bill last month seeking more penalties on Russia for alleged elections meddling. The currency is up 5.7% in 2019, the best rally globally.
Foreigners’ share of ruble notes, known as OFZs, rose in January for the first time since March, according to the latest data from Bank of Russia. At 25%, the non-resident portion of Russia’s local debt is still far from its 34.5% peak.
83 RUSSIA Country Report April 2019 www.intellinews.com
