Russia

The US Treasury has said that Russia’s bond market is too important to global financial stability to sanction under Directive 1, which is the “most positive scenario for Russian financial instruments,” according to analysis by Danske Bank.

RusHydro, the Russian hydroelectric power generator, will meet investors next week for a Eurorouble bond.

Some of the wealthiest and most influential businesspeople in the Russian Federation received an expected, but still unpleasant, piece of news on Monday with the publication of a US Treasury Department list that is expected to precede new sanctions, write Sam Kerr and Bianca Boorer.

Despite the impending US Treasury recommendations on Russian sovereign debt, Russian OFZ’s hit their highest cash price since 2015 this week, suggesting investors are betting heavily that the report will come to nothing.

Two Russian issuers forged ahead with plans to issue Eurobonds this week, despite increasing noise around Russian sanctions that threaten to push spreads wider.

Moscow’s Domodedovo Airport (DME) has named leads for dollar roadshows, potentially adding to the $2bn of supply from Russian issuers so far this year.

The long anticipated US Treasury Department report on oligarchs and parastatal entities of the Russian Federation was published on Monday night, but no indication of the Treasury’s recommendation on sanctioning Russian government debt was given.

Credit Bank of Moscow, the only survivor of four banks identified in a leaked report from an Alfa-Capital analyst in August as at risk of a central bank bailout, has mandated lead managers for a senior trade.

Three new issues from Polyus Gold, Rusal and Alfa-Bank were trading below reoffer, with investors blaming the aggressive pricing strategies of Russian issuers, rather than concerns about the US Treasury recommendations due on Monday.

Russian corporates have been quick off the mark in the bond market this year with two more following fertilizer company PhosAgro into bonds this week.

United Company Rusal has released price guidance for its Reg S/144A five year benchmark bond.

Russia’s Alfa-Bank achieved a sub 7% print to raise $500m with the first additional tier one from the country this year.