Russian issuers preparing several yuan-denominated bond issues for end of year - RusAg Bank
MOSCOW. Oct 19 (Interfax) - Russian issuers will continue to tap the domestic bond market with yuan-denominated bond issues at the end of this year and next year, according to deputy CEO of RusAg Bank Anna Kuznetsova.
RusAg Bank was the organizer of three of the four yuan issues placed in August-September.
"So far, four issuers have entered the market. Book building has been going well, several deals are being prepared for the end of this year," Kuznetsova said, speaking at a forum titled "The Future of the Bond Market: Return to Growth" organized by Expert RA.
"I think this trend will continue next year," she said.
Financing in yuan "is cheaper than in rubles, at least at the moment," Kuznetsova said.
"Investors, private and wealthy ones, have expressed demand for this product, and I think banks will eventually offer it," Kuznetsova said, explaining that this is due to the process of transition from "unfriendly" to "friendly" currencies.
Bonds in yuan have already been placed by Rusal , Polyus , Metalloinvest and Rosneft . In addition, Rusal plans to collect bids for another issue of yuan-denominated bonds in late October.