Page 86 - RusRPTNov18

8.5 Fixed income
It’s the summer season and the bond markets have been very quiet with few issues of note.
8.5.1 Fixed income - bond news
Russia's Finance Ministry returned to the OFZ bond market after a
four-week break , proposing two auctions of federal bonds maturing in 2021 and 2024 worth RUB10bn each. OFZ yields rose from circa 7% at the start of the year to a peak of 9% over the summer. The October auctions say depressed demand as only two thirds of the 2024 issue were placed at 8.29%, while the 2021 auction was called off due to lack of bids.
Russian petrochemical major Sibur made an offer to buy back up to $200mn of its only Eurobond in circulation, a $500mn bond, with the tender open until October 17. Sibur is in the focus as the company is expected to decide on an IPO , planning to raise $2bn-3bn based on a valuation of $20bn-$26bn . This would not only make Russia's biggest IPO in more than a
86 RUSSIA Country Report November 2018 www.intellinews.com