Page 110 - RusRPTSept22

8.5.1 Fixed income - bond news
Investors snapped up Russia’s second ever yuan-denominated bond
issued by leading gold miner Polyus that did even better than the debt Chinese currency bond issued by aluminium producer Rusal in July.
As bne IntelliNews reported the “yuanization” of the Russian economy continues, as banks, companies and even the population abandon the dollar, made useless by the extreme sanctions imposed by the West following Russia’s invasion of Ukraine in February.
Polyus placed a CNY4.5bn ($658mn) five year note at 3.8% that was heavily oversubscribed. More yuan bonds are expected, especially from large export-oriented companies.
The bond was floated on August 23 and investors were offered five-year bonds totalling up to 3.5bn yuan with a coupon of 4.2% pa, but the offer was increased due to strong demand. The organisers were Gazprombank and Zenit Bank, Dom.RF Bank, BC Region, Rosselkhozbank, Tinkoff and BCS Global Markets.
The Polyus bond exceeded the two tranches of the Rusal bonds placed on July 27 and 28 which have a two year maturity each of CYN2bn and RUB18bn and a 3.9% coupon.
110 RUSSIA Country Report September 2022 www.intellinews.com