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. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russia: High-yield issuance set to rise

M&A and capital expenditure needs likely to drive more deals.

Albert May, Citigroup Albert May, Citigroup: Russia’s promotion to investment grade should bring high-growth companies to market

Political risks are rising in Russia, but so too are the rewards. To date, international bond issuance from Russia has been dominated by plain vanilla Eurobonds from leading players in the energy, metals and financial sectors, but bankers at Citigroup believe that this year welcome diversification in both financial instruments and issuers could be seen. According to Albert May, head of corporate finance for central and eastern Europe, the Middle East and Africa at Citigroup in London, the recent promotion of the Russian sovereign to investment-grade status sets the stage for high-growth, high-margin Russian companies with sub-investment grade ratings to access the international debt markets. The most likely candidates are companies involved in technology, telecoms and media, and consumer goods that are looking to borrow to grow their businesses, either through M&A or capex programmes.

Given the relatively high margins of these businesses and the growth opportunities, they are eager to move away from raising equity and are attracted by the relatively long-term financing offered by high-yield bonds.

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.


Unlimited access to and

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


Unlimited access to and, 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


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