Financial Times: The worst is behind for Russia

Financial Times wrote about the growth of foreign borrowing by Russian companies - despite the almost completely closed to them sanctions access to this market.
The head of the investment bank “Renaissance Capital” Igor Vine, who gave an interview, said that his company is increasingly moves its operations c internal to the external market.
“During the first six months of this year there has been significant growth of Russian financial assets. Willingness of investors to acquire large corporate debt of Russian companies means that, most likely, the worst is behind for Russia“, - he said.
Owned by Mikhail Prokhorov, “Renaissance Capital” Only together with Sberbank and “Citibank” has completed a deal on restructuring the debt of 150 million. Dollars Industrial Metallurgical Holding “Coke.”
“In most developed countries, interest rates are very low, if not negative, and Russia against this background is of great interest to investors”, - says Vine.
Quotes:
Russian corporates prepare foreign debt blitz
Russian businesses are preparing to issue a blitz of foreign debt, despite financial sanctions that have all but closed the country’s access to international capital markets for the last year, according to the head of one of its leading banks.
Igor Vayn, chief executive of investment bank Renaissance Capital, told the Financial Times his business was doing less domestic business and has allocated more resources to other geographies. But he indicated the “worst was over” for Russia.
“There are a number of companies preparing themselves especially on foreign currency side and they’re getting ready to issue new debt,” he said.
“There’s been a strong rally in Russian financial assets in the first six months of the year,” Mr Vayn added. “The fact that investors are ready to buy Russian strong corporate debt is indicative that most likely the worst is over.”
Renaissance Capital is owned by billionaire Mikhail Prokhorov, a Russian politician and former industrialist. Along with Sberbank and Citi, it has just closed a $ 150m debt exchange for IMH, an exporter of pig iron and producer of merchant coke, which gave the Russian company an extra two years borrowing time on a bond.
Another bank, OAO Ak Bars, is working with Credit Suisse and UBS to try to raise up to $ 400m in bonds in what would be the first foreign-denominated debt issuance by a Russian bank in six months.
“Interest rates are very low if not negative in many developed countries, that’s why people are looking for opportunities somewhere else, in this case Russia does present a very interesting opportunity for them,” Mr Vayn said.
He added that investors from Europe had been particularly active, most notably from the Swiss private banking sector. There has also been a “decent amount of activity” out of the US, he added.
Renaissance Capital plans to expand its team in the US and elsewhere. Growth in sub-Saharan Africa and other frontier markets is the main mandate o

29 July 2015

Investments and “pravoseki”
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