* Promsvyazbank delays roadshow to investors
* TCS may consider Eurobond once conditions favourable
* Russian investment banking fees last yr totalled $806 mln
MOSCOW, March 4 Russian companies are putting
plans for bond deals on hold while banks assess the impact on
investor demand of a slump in financial markets following
Russia's military intervention in Ukraine.
Russian bank Promsvyazbank said it was delaying a
roadshow to investors and credit firm TCS said it would
only consider issuing a Eurobond once conditions were favourable
"All (is) on hold in the short-term, certainly, but if
people calm down it shouldn't be anything more than short-term,"
said one debt capital markets banker from a European bank who
specialises in emerging markets.
Russia paid a heavy financial price on Monday for its
military action in Ukraine, with stocks, bonds and the rouble
Moscow's forces remained in control of Ukraine's Crimea
region on Tuesday but markets partially recovered on hopes of
easing tensions after Moscow ordered troops on exercise in
western Russia back to base.
But the turmoil has forced bankers to try to assess damage
to corporate deals and share sales and to calm clients.
Banks earn sizeable fees to arrange M&A deals, bond sales
and to underwrite stock market flotations, but a deal freeze may
only have an impact on fees if it turns into a prolonged issue,
the banker said.
Investment banking fees in Russia throughout 2013 totalled
$805.5 million, up 3 percent from 2012, with fees from debt
capital markets accounting for more than a third, according to
Thomson Reuters data.
Promsvyazbank had been looking to raise capital via
subordinated Eurobonds, a financial market source told Reuters
last month. Its investor meeting, scheduled for March 3, was to
talk about placing a subordinated Eurobond, according to
Kommersant. [ID nL6N0LW2AI]
"According to the current instability into financial
markets, we decided to delay the meetings with investors until
the situation gets more positive," Anna Belyaeva, Vice President
at Promsvyazbank, said in a statement from the bank's press
office on Tuesday.
Russian consumer credit firm TCS's head of
corporate finance Sergei Pirogov said on a conference call to
analysts on Monday that the company was not compelled to raise
additional funding from the market at the moment but would
consider a subordinated Eurobond issue if it deemed market
conditions favourable, a spokeswoman said.
Pirogov said in December that the company might place a
subordinated Eurobond in the first quarter of up to $200
million, according to an Interfax report at the time.
The events in Ukraine will likely affect the prices of
Russian loans, with companies facing higher interest rates, RLPC
reported on Monday. Talks on five new Russian loans totalling up
to $5.5 billion are in advanced stages.
"(M&A and deal underwriting) is going to be delayed and if
things continue the equity markets here will be shunned," one
Moscow-based trader said on Monday.
Russian President Vladimir Putin, in his first news
conference since Ukraine's ousted leader Viktor Yanukovich fled
from Ukraine, said on Tuesday that the turmoil seen in Russian
markets was a "tactical, temporary" decision by investors.