Russia adopts Basel III routine with tier twos for Sberbank and RSB

Investors are becoming increasingly comfortable with Russia’s new Basel III rules for tier two bonds. State-owned Sberbank priced its $1bn lower tier two deal on Thursday with only a 12bp pick-up over its outstanding LT2 bond. Meanwhile, much lower rated consumer finance bank Russian Standard Bank is also roadshowing a subordinated bond. Both are Basel III compliant.