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Corporate law and governance, financial transaction taxes

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Financial infrastructure and financial market regulation


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Foreign Investors’ Share in Russian Corporate Bonds Market May Triple

22.01.2014 14:34 / Interfax

The share of foreign investors in the Russian Corporate Bonds market may increase over three times in the next 2-3 years, worth USD 10-15bn or 10%, Russian Finance Minister Anton Siluanov told the press.

“We expect the market share of foreign investment in Russian Rouble-nominated corporate bonds to reach some 10% over the next two to three years from today’s under 3%, gaining roughly USD 10-15bn, and the cost of Rouble funding to decline in the more developed Eurobonds markets”, Siluanov said, quoting expert opinions.

The Minister pointed out that the OFZ market has been fully open to foreign investors for a year. “In the past year, the share of foreign investors in this market has soared, reaching almost a fourth, and we are pleased to report that the world’s leading investment houses, including sovereign funds, have now started to invest directly in Russian local state bonds”, stated the Minsiter.

According to Siluanov, opening the corporate and municipal bonds market, soon to be followed by the shares market, to foreign investors is a major breakthrough. “We can now say that the Russian trade infrastructure has passed the test and that Russia is now fully integrated into the global securities market. We have also advanced towards making the Rouble a reserve currency”, he said.

The international settlement depositary Euroclear will enter the Russian corporate and municipal bonds market on 30 January. Euroclear and Clearstream gained access to the Russian OFZ market in the Spring of 2013. Starting 31 May 2013, Clearstream also processes Russian regional and municipal bond trades. The Russian share market will be opened to Euroclear and Clearstream on 1 July 2014.

Project Group №1