The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Russia: Moscow mandates for market comeback

After a hotly contested process involving more than 20 investment banks the authorities in Moscow have mandated Barclays Capital, Citi, Credit Suisse and VTB Capital to lead manage Russia’s return to the international bond markets after an absence of more than a decade.

Although there’s some disappointment at the banks that failed to make the grade this time around, there’s also the expectation that the Kremlin will shuffle its lead-manager pack when it comes to mandating future issues.

The appointment of VTB Capital is a noteworthy coup for the Russian investment bank, which was set up as recently as 2007. The bank fought off competition from local rivals Troika Dialog, Renaissance Capital and Sberbank to secure the sole berth reserved for a Russian bank.

Leading arranger
Although VTBC lacks a pedigree in the sovereign bond business, it does boast a strong corporate bond franchise. According to Russian fixed income portal Cbonds.ru, in 2009 VTBC was the leading arranger of Eurobond and local bond issues in Russia/CIS. "Despite international finance market turmoil, VTB Capital has succeeded in attracting investments into the Russian economy and helping companies get resources for further development," says Yuri Soloviev, VTB’s president.

Russian deputy finance minister Dmitry Pankin

"We are not talking about lowering the yield from current market levels by two to three basis points but by several tens of basis points"

Dmitry Pankin

According to deputy finance minister Dmitry Pankin the winning banks were chosen because they proposed a more aggressive funding strategy, with Pankin claiming that any new issuance would slash borrowing levels for the sovereign.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree