Ukraine Again Shuts Down Corporate Bond Revival: Russia Credit - Businessweek

Ukraine Again Shuts Down Corporate Bond Revival: Russia Credit - Businessweek:



"Prospects for a revival in Russian corporate bond sales are dimming again as stepped-up sanctions by the U.S. and questions over the downing of a Malaysian airliner curbed interest in the nation’s debt.



“The door is shut again,” Michael Ganske, head of emerging markets at Rogge Global Partners Plc in London, where he helps manage $8 billion in developing-nation bonds and currencies, said by e-mail July 18. “It’s hard to imagine that international investors would be open to new issuance from Russian entities.” 




While Russian companies including OAO Sberbank and Alfa Bank seized on a lull in tension with Ukraine to issue euro-denominated debt last month, fresh U.S. sanctions last week and the downing of a Malaysian Air jet over eastern Ukraine on July 17 threaten to drive away investors. Corporate foreign-currency bond sales have tumbled 67 percent this year to the lowest level since 2009."



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