Sberbank’s Moscow Dollar Bond Plan Shows Funding Strain - Bloomberg

Sberbank’s Moscow Dollar Bond Plan Shows Funding Strain - Bloomberg:



"Russian banks need dollars, and there may be no easier place to find them than at home.



With sanctions driving the cost of swapping rubles for dollars to a record, OAO Sberbank and OAO Gazprombank said they’re weighing selling bonds in foreign currencies to Russians as a source of cash for domestic companies. Individuals hold a net $75 billion in such deposits at the nation’s lenders, central bank data show.



Being locked out of global capital markets because of the conflict in Ukraine is raising the stakes for the nation’s lenders as companies including OAO Rosneft face $17.6 billion of dollar-denominated debt maturing before the end of the year, data compiled by Bloomberg show. Russian lenders would join companies from Venezuela and Argentina, who have tapped their citizens for foreign currency as overseas sources dried up."



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