EEMEA market round-up: Russia's rouble-linked Eurobond

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EEMEA market round-up: Russia's rouble-linked Eurobond

Norway’s export credit agency, Eksportfinans, was the first issuer to take advantage of the Russian government’s decision to make the rouble fully convertible from July 1, selling a R1.5 billion ($558 million) rouble-linked Eurobond less than a week later.

But because the rouble cannot yet be settled through Euroclear or Clearstream, all payments are denominated in US dollars. The five-year bond was priced to yield 6.048%. Orders from Germany and Switzerland drove the deal.

Bankers say predicted foreign inflows into Russian government debt following the move to convertibility are likely to take several months to materialize, as investors need time to get credit lines in place.

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