January 18, 2018 / 11:39 AM / a year ago

Credit Bank of Moscow plans dollar-denomiated Eurobond -source

MOSCOW, Jan 18 (Reuters) - Russia’s Credit Bank of Moscow plans to issue a dollar-denominated Eurobond, a financial market source told Reuters on Thursday, confirming an earlier report.

The issue would be in the next two weeks, debt market news service Debtwire reported, citing two sources.

Credit Bank of Moscow declined to comment.

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 in 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. (Reporting by Jack Stubbs, Andrey Ostroukh, Tatiana Voronova and Oksana Kobzeva; Editing by Katya Golubkova and Alexander Smith)

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