On September 13, Rosneft plans to collect investor applications for exchange-traded bonds of the 002P-12 series with a volume of at least 10 billion yuan and offering within two years. The period of circulation will be 10 years, the coupon rate will be announced later, writes Vedomosti, referring to the preliminary parameters of the issue.
Even from these data, it is already clear that Rosneft will at least double the Russian yuan bond market, according to the first vice-president, head of Gazprombank’s Capital Markets Bloc.
“Given Rosneft’s large-scale operation and consistently high credit rating, I think we should expect increased interest in the oil company’s bond issuance not only from institutional investors but also from retail investors. relatively
The announced large volume of Rosneft will make the issuance of bonds highly liquid on the stock market,” says the expert.
According to him, the launch of another company with the issuance of yuan and even more financially stable, backed by an impressive portfolio of projects like Rosneft, is a positive signal for the entire Russian securities market.
Gazprombank believes that the company’s liquid yuan bonds will increase the number of investment instruments available in the Russian financial market and contribute to the further development of the company.
Sergey Suverov, investment strategist of Arikapital Management Company, reminds that there are not many yuan-denominated bonds in the market yet. Thus, in August, Rusal and Polyus issued 4 billion and 4.6 billion, respectively, while coupon size was 3.9% and 3.8%. Metalloinvest also announced that it plans to place up to 2 billion yuan-denominated bonds in the domestic market with a coupon rate of up to 3.5% for a two-year issue and up to 4% for a five-year issue.
Given Rosneft’s significantly larger business and consistently high credit ratings, Suverov believes increased interest in the oil company’s bond issuance should be expected.
According to the expert, the fact that large players began to enter the Russian bond market to place securities in yuan
of course, “a very positive signal”.
Alexander Frolov, Deputy Director General of the National Energy Institute, describes Rosneft’s withdrawal of financing in Chinese yuan as a logical step for the company, which is one of the leaders in the supply of oil to China.
Rosneft has provided about seven percent of China’s total annual raw material needs until this year.
Long-term contracts with Chinese CNPC.
According to Rosneft’s report, the share of its revenue from the sale of oil and oil products in the Asian direction in 2021 was more than 27%. Frolov emphasizes that most of these deliveries come from China.
The expert believes that the share of sales in China has already increased and will continue to increase, given the reorientation of deliveries to the Asian market this year.
“Besides, given the steps already taken by the Russian and Chinese authorities to switch to national currencies in mutual agreements, you can be sure that Rosneft will receive a revenue stream in yuan to meet its announced obligations. bond issue. This completely eliminates any currency risk for the company,” said the deputy director general of the National Energy Institute.
Source: Gazeta
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