Page 94 - IFR Opportunities in Russian capital markets

CHAPTER04
ifrintelligence reports/Opportunities in: Russian Capital Markets
Figure 4.14: Russian domestic bond ownership, 2006 (%)
27.4%
24.8%
15.2%
2.8% 1.7%
1.1% 8.1%
Asset management companies State asset management companies Investment houses
Insurance companies
Non-state pension funds
Mutual funds
Others
Russian banks
Sberbank
Banks registered in Russia, subsidiaries of foreign banks and investment funds
Source: Banks, Central Bank, National League of Asset Managers, NAUFOR, Interfax, Troika Dialog estimates
12.5%
3.1%
3.4%
Figure 4.15: Bank shares of bond issuance, by segment, 2006 (%)
%
40
30
20
10
0
Note: Sovereign bonds include OBRs
Sovereign bonds Regional bonds Corporate bonds
Source: Companies, Central Bank, Interfax, Traoika Dialog estimates
Russian banks
Sberbank
Banks registered in Russia, subsidiaries of foreign banks and investment funds
Corporate ruble bonds
In April 2000, a string of big Russian companies, led by diamond producer Alrosa, began to issue the first post-crisis ruble bonds. Both the number of issues and issuers ballooned rapidly, but the first bonds were more of a dodge to release money trapped in special accounts at the CBR following the government's default on its debt in 1998 rather than an investment.
However, the market quickly became real and the first round of corporate bonds, issued by the obvious blue chip companies, was soon followed by second and third-tier companies.
The breakdown of the top issuers in 2006 is indicative of the changing shape of the Russian economy. While the state-owned companies still dominate – with railways, Russia's second largest and state-owned bank, VTB, and Gazprom being the three biggest single issuers of bonds – the presence of Rosbank (RSB), the leading retail bank from the non-state banks, and the state-owned refinancing agency AIZhK in the fifth and sixth slots highlight the growing importance of the consumer in the economy (see Figure 4.16).
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