Russia's Credit Bank of Moscow plans to issue a dollar-denominated Eurobond, two sources in the financial and banking sectors told Reuters on Thursday. Credit Bank of Moscow declined to comment on the issue, which would come in the next two weeks, debt market news service Debtwire reported earlier, citing two sources.
Russia's banking sector is under intense scrutiny after the central bank bailed out three of the country's largest private lenders in the second half of last year. A report by the United States on possible further sanctions against Russia, due by early February, may also make it harder for Russian businesses to raise debt abroad. Sberbank analysts said holders of Credit Bank of Moscow bonds had struggled with increased volatility during the second half of last year due to instability in the sector. "Although the situation in the Russian banking sector looks relatively stable at the moment, we believe that given the current situation, the borrower will have to offer a certain premium to the secondary market levels," they said in a note. Rossium, the investment vehicle which controls Credit Bank of Moscow, said in September last year it was considering buying three of the bank's subordinated Eurobonds.
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