Russia

In the last RMB round-up of 2015, HSBC became the first foreign bank to issue RMB-denominated CDs to corporates in China, Hungary plans RMB bonds in 2016 and Russian bank VTB saw a big boost to its RMB business in 2015. Plus, a recap of GlobalRMB’s top stories this week.

Good news from the US Federal Reserve — in the form of a more dovish rate announcement than some market participants had expected — brought a sanguine close to a turbulent week for credit derivatives and boosted equity markets, but only added to the pressure on emerging market countries and their currencies.

More cross-border RMB activities can be expected as the People’s Bank of China (PBoC) has approved Rmb50bn ($774m) of RQFII quota to Thailand, and agreed with Russia to deepen bilateral financial co-operations, including facilitating the Russian government to issue Panda bond in China.

Novorossiysk Grain Plant finally listed and started trading on the Moscow Exchange on Tuesday, after having delayed closing the deal for three weeks.

Russian steel company Evraz raised $750m from a bond that was printed tight to secondary levels on Thursday as it benefited from huge pent up demand for Russian corporate paper, even in a volatile market for metals and mining firms.

Europlan, the Russian car and truck leasing company, has completed its IPO on the Moscow Exchange, raising Rb3.27bn ($47m). Allocations were made on Thursday December 10.

Russian steel company Evraz has set the yield on a long five year benchmark at 8.25% area, a level that bankers away from the deal said was roughly in line with where he calculated fair value for the bond.

Russian steel company Evraz is roadshowing a Reg S senior unsecured dollar bond through six active bookrunners and two passive, in tandem with a tender offer.

Renaissance Securities is buying back $39.9m of the outstanding $146m of Renaissance Credit’s 7.75% 2016 bonds.

Russian fertiliser producer EuroChem has signed a €200m club loan through its European subsidiary to cut costs, but the deal still carries Russian risk, bankers say.

Military tension with Turkey sent Russia’s credit default swap spread wider this week but Russia’s apparent rapprochement with the west has seen investors treat Russian bonds in a much brighter light.

A list of 27 Russian banks and corporates have set up the Analytical Credit Rating Agency, and staffed it with some of the biggest names in the Russian capital markets. But while Russia needs a domestic ratings agency more than ever, its biggest challenge will be establishing credibility.