Page 19 - bne_newspaper_March_29_2019

Eastern Europe
March 29, 2019 www.intellinews.com I Page 19
Russian blue chips dividend stocks set to out perform
The Russian leading stock index the dollar denominated Russia Trading System (RTS) has been largely range bound for most of the last four years. But Russia pays the highest dividends in the world, the Fed easing means a “wall of money” is headed to emerging markets and the best names are reporting record profits. Some stocks are flying.
Ben Aris, editor-in-chief of bne IntelliNews talks with Slava Solyaninov, the chief strategist at BCS GM about some of the more interesting stories in the market including: Lukoil, Novatek, Gazprom, Sberbank, Tinkoff Bank and RusAl.
Slava Solyaninov,
Chief Strategist at BCS GM
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Another Russian industrial major that could follow with a Eurobond placement is metals
and mining company Evraz, which is placing five- year Eurobonds denominated in US dollars at about 5.5%, RIA Novosti said on March 26 citing banking sources.
Reportedly the demand for Evraz’ placement exceeds $2.4bn, with the yield cut from the initial 5.625-5.75% annually. The company had a road- show on March 20-25.
As reported by bne IntelliNews, leading
Russian commercial bank Credit Bank of Moscow (CBOM) also successfully issued its second $500mn Eurobond this year on March 22. It follows on from €500mn Eurobonds maturing in 2023 issued in February carrying an annual coupon rate of 5.55% that was also met with high demand, almost triple the supply of
bonds on offer.
The new senior 5.25-year $500mn bond was issued with a coupon of 7.121% and its fist issue in US dollars this year. The offer was oversubscribed by almost 1.5 times, the yield was lowered by an eighth from the initial price guidance.