Rosneft seals second yuan-denominated 10-year bond issue worth 15 billion yuan
Rosneft has closed the order book for the second yuan-denominated, 10-year bond issue, according to multiple financial news outlets. The total size is reported at 15 billion yuan, with a coupon set at 3.5%, and applications reportedly gathered by March 15 while official placement is scheduled for March 20.
Market observers note that this settlement marks the largest ruble-equivalent corporate bond transaction in Russia’s history to date. Rosneft previously set a similar milestone on September 15, 2022, when it launched a 15 billion yuan issue amounting to about 128.5 billion rubles at the Central Bank’s exchange rate on the placement day. The current issue continues to reflect favorable liquidity conditions for yuan ruble-linked debt in the domestic market.
Ronald Smith, senior analyst at BCS World Investments, describes the deal as a standout in ruble terms within Russia’s corporate bond sector. He points out the strong investor interest in yuan-denominated notes and notes that the company’s high credit quality underpins the favorable demand trend. Sergey Suverov, investment strategist at Arıkapital Management, adds that the market has shown a steady rise in yuan borrowing costs since late last year. Since August 2022, he notes, 11 Russian borrowers have tapped yuan-denominated bonds on the Moscow Stock Exchange, totaling 59 billion rubles.
Analysts emphasize Rosneft’s pivotal role in yuan-based finance within the domestic market. Suverov highlights that the second issue further cements Rosneft’s position as a leading yuan bond issuer, accounting for roughly 40% of all yuan settlements in Russia. The high demand for Rosneft bonds and the relatively low coupon are attributed to the issuer’s strong credit standing and to long-term contracts that mitigate currency risk for the company.
Rosneft’s relationship with China remains a key driver of the company’s trading profile. The oil producer is among the top suppliers to China, supplying a significant portion of China’s oil needs annually. Around early 2022, Rosneft disclosed that exports to China since 2005 totaled hundreds of millions of tons of crude, underscoring the long-standing trade ties between the two economies. These dynamics help explain the appetite for yuan-denominated debt within the Russian corporate sector and the ongoing interest from investors seeking exposure to renminbi-denominated funding tied to a large, stable borrower.
Finam FG analyst Alexei Kovalev comments on the attractiveness of Rosneft’s RMB notes for investors. He notes that the first yuan-denominated issuance, launched in September when yuan OFZ bonds were not available, stood out as a highly rated instrument within the segment. Kovalev also reminds readers that Rosneft’s yuan bonds rank prominently in terms of daily turnover and the number of transactions on the Moscow Exchange’s yuan market, reinforcing confidence in the instrument’s liquidity profile.
Current yield for Rosneft’s yuan bond issue is cited at approximately 3.6 percent, aligning with investor expectations for a balance of yield and credit quality. The market’s reception to yuan-denominated corporate debt reflects a broader trend: foreign currency funding channels expanding alongside domestic demand for yuan exposure, supported by stable bilateral trade relationships and the perceived resilience of borrowers with robust international operations. The ongoing participation of institutional investors and the strategic positioning of Rosneft within the currency-denominated debt universe indicate a continued evolution of Russia’s cross-currency funding landscape.
In assessment, China-Russia trade links and Rosneft’s global footprint continue to shape the appeal of yuan-denominated credits on the Moscow Stock Exchange. While currency risk remains a consideration for some investors, the combination of a diversified revenue base, long-term contracts, and a strong sovereign-anchored trading relationship provides a compelling backdrop for future yuan bond issuances by Russian corporates. The market will likely monitor subsequent issues for shifts in coupon levels, typical tenor demand, and the extent to which yuan-denominated notes gain broader acceptance among international investors in North America and beyond. This evolving dynamic could influence pricing, liquidity, and the overall appetite for RMB-linked corporate debt across major markets. The latest Rosneft issue marks a milestone in this ongoing development, illustrating how corporate finance in Russia interacts with Asia-focused trade patterns and currency strategy. Citations indicate market commentary from industry analysts and press reports documenting the deal and its implications for debt issuance in yuan within the domestic market.