Russia

Market participants agreed the US could have imposed far harsher sanctions on Turkey this week, which helped to fuel a slight rally in local risk assets on Tuesday morning.

The Russian IPO market reopened in 2020 with a number of new listings, giving equity capital markets investors a chance to once again back new listings from EMEA’s most important emerging market. The most impressive of all these listings was Ozon, the Russian e-commerce company, which listed on the Nasdaq to acclaim from global tech funds. Sources are hoping more Russian tech unicorns will follow it to public markets in 2021.

Despite the market volatility and uncertainty that have gripped emerging market bond markets in 2020, green and ESG-linked issuance has continued to grow, and market participants expect further expansion next year.

Ozon, the Russian e-commerce company, completed its IPO on the Nasdaq on Tuesday having built a huge order book for the stock.

With the inauguration of US president-elect Joe Biden in January will come increased expectations of further sanctions against Russian figures and corporates. Russian issuers should take advantage of the rally initiated by Biden's election performance and follow their sovereign into bond markets to raise cash while the going is good.

Sistema, the Russian diversified holding company, has raised a sustainability-linked credit line through the country's largest lender, Sberbank. Though there has been an increase in sustainability-linked financing in Russia, this deal marks the first ESG-linked loan between a domestic corporate and borrower.

The Russian Federation and the Republic of Hungary brought euro-denominated trades on Thursday, taking the opportunity to get funding done during good conditions in the run-up to the US Thanksgiving holiday, after which liquidity is expected to dry up.

Russian equity capital market bankers are preparing to reactivate the country’s IPO scene with a number of deals lined up for next spring, though some may even be priced this year.

Russia's second largest gold producer Polymetal has raised a green loan.

The eventual result of Tuesday's US presidential election could have a monumental impact on the position of key emerging markets states like Russia and Turkey in the international arena.

Ozon, the Russian e-commerce company, has filed its initial paperwork for a US listing that could be squeezed in before the end of the year.

Donald Trump and Joe Biden each present a different set of medium-term risk factors for emerging markets if they win next week’s US presidential elections. But the US Federal Reserve’s promise to keep rates lower for longer — combined with unprecedented monetary policy support from other developed market central banks — should provide a cushion that is more relevant to EM bonds than the Oval Office’s occupant. Mariam Meskin and Oliver West report.