Sberbank does not believe it advisable to issue bonds in yuan currently - bank's first deputy head

VLADIVOSTOK. Sept 11 (Interfax) - Sberbank at the moment does not believe it advisable to issue bonds in yuan, largely due to the decline in yuan liquidity and reduced investor interest in such instruments, the bank's first deputy chairman Alexander Vedyakhin told reporters.

"As for yuan liquidity in the Russian market, exports fell slightly in yuan, then energy prices were falling, imports in yuan increased, so the inflow of yuan to the Russian market decreased, this is just an arithmetic outcome. Accordingly, there was less free yuan. And, based on this, issuing bonds does not seem advisable at the moment," Vedyakhin told reporters on the sidelines of the Eastern Economic Forum.

"We see that now the activity of those wishing to issue bonds has also decreased, precisely in yuan," he added.

At the same time, he said, current liquidity is sufficient for the main players in the market.

"In terms of liquidity in the market specifically, we have enough. Just like all the major players. This moves yuan rates up a bit, but in general it is a market mechanism that works quite well," Vedyakhin said.

Sberbank reported that it was considering placing its bonds in yuan last November due to increased interest in this currency. Specific parameters, volumes and terms were not announced.