Russia

The Bank of Russia has added Credit Bank of Moscow to its list of systemically important banks (SIB), prompting a 2.5 cash point rally in the issuer’s subordinated bonds.

Money managers say that blended products are the most efficient way to invest in emerging markets as cross-asset class total return funds trump those with a sole focus.

The goal of making the RMB a global commodities currency is not a job for those looking for quick successes. But recent moves from Russia and the Middle East have laid further bricks on the road to glory for China.

Banca Intesa has found relief from its efforts to offload a €5.2bn loan it made to Glencore and Qatar Investment Authority for the acquisition of a 19.5% stake in Rosneft, eight months after it fully underwrote the debt.

Russian Railways will meet investors on Wednesday to discuss its first Swiss franc bond in five years.

Qatar Investment Authority and Glencore have agreed to sell a 14.16% stake in Russian oil company Rosneft, out of their jointly held 19.5% stake, to Chinese energy company CEFC China Energy.

Russia’s Far-Eastern Shipping Company (Fesco) has reached a milestone in its dollar bond restructuring saga, after almost half of the holders of its bonds agreed to some key terms.

Rating agency Moody’s has slapped beleaguered Russian private bank Otkritie with a two notch rating downgrade this week, as subordinated debt holders in the bailed out bank look set to take heavy losses.

The Moscow Exchange (MOEX) this week began trading for dollar-rouble and euro-rouble fixing instruments, one day traded products that settle into official MOEX FX fixing rates.

The dry spell is over for investors in emerging market debt with several mandates hitting the screens on Tuesday. The first trades will be eagerly watched as a barometer for new issue premiums after a summer that has seen escalating geopolitical tensions and further questions about the direction of travel of both the European Central Bank and the US Federal Reserve.

Russian aluminium producer Rusal priced its second Panda bond of the year on September 1, reopening the market after a quiet month.

Emerging markets bankers have been moving towards unsecured debt and lower pricing in the Russian loan market, however the latest round of US sanctions has dragged Rosneft’s long-running $5.2bn acquisition loan back into the spotlight. Bianca Boorer reports.