Page 95 - IFR Opportunities in Russian capital markets

CHAPTER04
ifrintelligence reports/Opportunities in: Russian Capital Markets
Figure 4.16: Top corporate borrowers, 2006 (US$bn)
Source: Cbonds
2.0
1.5
1.0
0.5
0.0
RZD (transport)
VTB Gazprom (Banks) (oli & gas)
FSK RSB (utilities) (banks)
AlZhK (financials)
The corporate ruble bond market is the fastest growing of all the borrowing forms on offer and is a function of the growing cash pile in Russia’s otherwise fragmented banking system (see Figure 4.17).
Companies are also paying greater attention to the domestic securities market, because the ruble's appreciation has forced many of them to switch their exposure to local currency to avoid a currency mismatch, which is very important for those that focus on retail. For example, this is one reason why retail chains favour ruble bonds to Eurobonds for public borrowings.
Figure 4.17: Bond deals, 2001–Nov 2006
Source: Troika Dialog
No. of deals 250
200 150 100
50 0
In Eurobonds In CLNs
In ruble bonds
Transport Food Construction Chemicals Agriculture Other
2001 2002 2003 2004 2005
11m 06
Figure 4.18: Bond market breakdown, by sector, 2006 (%)
2% 2% 5%
3% 5%
29%
9%
Banks and financials Trade
Oil & gas
Electricity & utilities Telecoms
Machinery Metals & mining
6%
7%
8%
Source: Cbonds
88
8%
8% 8%