PSB bond beats sanctions fallout by a day

By Steven Gilmore
17 Jul 2014

Promsvyazbank priced a $300m seven year tier two note on Tuesday afternoon, narrowly avoiding the fallout from a new set of US sanctions on Russia. The issuer is still conducting an exchange on its older dollar debt, but the turmoil across the Russian secondary market is unlikely to affect the exercise, said bankers on the deal.

“It was actually quite a ballsy move,” said one debt banker, who is on the deal, on Tuesday. “You had the backdrop of a choppier EM bond market, skirmishes across the Russia/Ukraine border and more debate about sanctions.”

A day later it became clear just how ballsy the issuer had ...

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