Severstal success heralds Russian LM pipeline

By Steven Gilmore
15 May 2014

Russian steel manufacturer Severstal kicked off what some bankers expect to be the first of a run of Russian asset liability management trades this week. Low cash prices and leftover Capex cash are prompting the country’s corporates to turn to tenders, they said, but a volatile and uncertain bond market presents problems for such exercises.

“Russian corporates with sufficient cash are definitely looking for opportunistic asset liability management opportunities,” said one senior ALM banker away from Severstal’s exercise. “You’re seeing those with blocks of excess cash buy back bonds on the open market and several are looking at tender offers."

A banker close ...

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