Under the arrangement, investors can buy certificates issued through AA+ rated BNP Paribas’s structured equity issuance programme linked to a wide range of Russia-specific investment themes.
Tim Bevan, vice-president, equity finance, at RenCap in London, says that the strong rating of the BNP Paribas programme means that both firms will be able to tap into a wider universe of investors beyond the normal emerging market specialists. "The target audience we are looking at includes private banking, high-net-worth individuals and family offices."
He adds that while many of those investors have been buying equities from the Bric (Brazil, Russia, India, China) countries over the past few years, the increasing divergence in performance between the Bric markets – both the Indian and Chinese markets are both sharply down this year, for example – means that there is increasing demand for specific single-country exposure.
Bevan adds that investors are also looking for a convenient way of playing certain investment themes in Russia through tailor-made instruments, which offer a combination of enhanced liquidity supported by comprehensive research. "Investors benefit from our strong research and closeness to the Russian market, combined with the structuring and distribution capabilities of BNP Paribas," he says.