Russian Finance Ministry prepared to place yuan-denominated OFZ bonds each year if market interested

ST. PETERSBURG. Dec 4 (Interfax) - The Russian Finance Ministry, which placed its debut yuan-denominated OFZ federal bonds this week, is prepared to do so every year in roughly the same volumes as the maturing sovereign bonds in dollars and euros, head of the ministry's public debt and financial assets department Denis Mamonov said.

"We have tactical plans and strategic plans. Tactically, we are already working on launching repurchase agreements in yuan with the Federal Treasury in the coming weeks, in order to raise the instrument's liquidity. Because, as I said, effective pricing for these securities is our absolute priority," Mamonov said during the Russian Bond Congress organized by Cbonds.

"And strategically, our view is that there is a curve of forex bonds which are gradually maturing - replacement bonds in dollars and euros and initial issues which were never replaced. We will likely plan to place more or less the same volumes in yuan each year, providing there is interest on the market. I think those are our benchmarks," Mamonov said.

Mamonov said that the Finance Ministry was not currently considering borrowings in other foreign currencies.

"I will be honest: we are not considering other currencies at the moment. Because, in our view, it's important that if we do something, we do it well. As such, we will focus on building a curve of yuan-denominated sovereign bonds. Obviously, we have two points at the moment, so it is more of a line than a curve. We still have lots of work to do in order to fill it and, possibly, extend it. I think, therefore, that this is just the beginning of a long, long journey in the development of this segment of the debt market," he said.