Investors Buy Rosneft Credit-Linked Debt as Ukraine Crisis Eases - Bloomberg

Investors Buy Rosneft Credit-Linked Debt as Ukraine Crisis Eases - Bloomberg:



"Securities tied to the debt of OAO Rosneft accounted for the biggest proportion of credit-linked notes sold this month as demand for Russian corporate debt recovers amid ebbing tensions in Ukraine.



Investors bought $119 million of securities in dollars and rubles linked to Russia’s largest oil producer, about a quarter of credit-linked securities sold so far this month, according to data compiled by Bloomberg. The yield on Rosneft’s 4.199 percent bond due March 2022 has fallen 6 basis points since the start of June to 5.25 percent after reaching a record 7.02 percent on April 25, the data show. 




Demand for credit linked to Russia is returning as peace talks this week showed signs of progress in resolving the three-month conflict. Rosneft’s bond yields rose after violence broke out in Ukraine and the U.S. announced sanctions against people close to Russia President Vladimir Putin, including the Moscow-based company’s Chief Executive Officer Igor Sechin. The sanctions didn’t extend to Rosneft, which is state-run."



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