STLC joins Russia flurry to offer rare state-owned credit
Russia’s State Transport Leasing Company (STLC), is planning to add to the spree of new bonds from Russia, hitting the road to market a six or seven year dollar benchmark. The deal will be the first time a fully state-owned company has tried to tap the bond markets since the most recent round of US sanctions against the Russian sovereign in early August.
The sanctions prevent US financial institutions from participating in new non-rouble sovereign bonds in the primary market. Several state-owned Russian issuers including VTB, VEB, Sberbank and Gazprombank were already similarly restricted.
That raises the question of how investors will respond to a dollar offering from STLC.“The reality ...