Fixed Income Analysis /
Russia

Alfa Fixed Income Weekly: Ruble debt market

  • The OFZ curve shifted 2-9 bp upwards w/w

  • The unfavourable market conditions will hardly be a barrier for borrowing

  • On the primary corporate bond market the issuers either continued to place their issues, or were preparing for them

Elizaveta Naumova
Elizaveta Naumova

Senior Fixed Income Analyst

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Alfa
6 April 2021
Published byAlfa

The OFZ curve shifted 2-9 bp upwards w/w. Negative factors continue to pressure the market; investors are worried over geopolitical tensions surrounding eastern Ukraine. OFZs are also under the pressure of the CBR monetary tightening expectations. Last week the Minfin declared its 2Q21 plans to place RUB 1 tn in OFZ. However, the unfavorable market conditions will hardly be a barrier for borrowings — state banks` representatives, including VTB and Sberbank, declared about their readiness to help to implement the plan. The presence of large players was already noticeable during the auctions last Wednesday. The Minfin placed its classic issues OFZ-FI 26233 (with a-date-to maturity in 2035) and OFZ FI-26236 (with a-date-to maturity in 2028) for total volume of RUB 354 bn (somewhat less than RUB 419.4 bn, attracted since the year start). The largest bid for the first auction totaled RUB 75 bn (48% of placement volume), for the second – they varied from RUB 10 to 30 bn.

On the primary corporate bond market the issuers either continued to place their issues, or were preparing for them: developer “Brusnica” placed its 3-year bonds for RUB6 bn at 9.6% per annum, Saint-Petersburg developer “Legenda” placed its 4-year amortized bonds for RUB 4 bn at 9.95% per annum. In the nearest future we expect placements of gas producer “Yatek”, financial and industrial holding “Setl Group”, as well as debut issue of one of the oldest in Russia household appliances and electronics retailer M.Video.