Whether Ukraine will enter the debt market after the fed statement about the cheap dollar is unknown
Russia decided to use the slowness of the United States, which are not in a hurry to impose new sanctions against Russia, and good conditions on the world market. The country has launched a placement of two Eurobond issues in dollars maturing in 2035 and the Euro in 2025. Learned about this in Reuters and have given the approximate price points for the Kremlin: for the American currency at level of 5,5% per annum for the European and 2.6% per annum.
It’s a little more recent offerings of the Russian Federation, which occurred on 0,2-0,3% cheaper. However, the price tags may be reduced, especially for the dollar. After yesterday’s announcement of the us Federal reserve, which declined to raise its rates before the end of 2019. The regulator wants to support its economy with cheap loans that almost immediately affected the value of the dollar — it was cheaper.
“After the announcement of the fed decision the dollar index DXY fell by 0.47%, and in the morning, the dollar became cheaper against the Euro (0.03%) and Japanese yen (0.08%)”, — said the Deputy Director of the information analytical center Alpari Natalia Milchakova.
Analysts believe that the Russians chose the perfect time to borrow currency. To a new wave of sanctions that may shut down Russian access to world markets, and after the decisions cost monetary resources.
“Usually Russia is hosting in London or Ireland, and all engaged in the usual range of financial institutions — VTB, Deutsche Bank, ING Bank. They saw a good window to exit the market: large placements of other issuers no, the fed announced a cheap dollar, Russia has a budget surplus and in favor of playing the good price levels on oil. All of this may be sufficient for low rates, despite existing and projected sanctions and to the high demand for Eurobonds. I think Russia can collect up to $10 billion,” — commented the financial expert Vladislav Kravets.
Analysts considered that the best moment for borrowing in the coming weeks may not only Russia but also other countries. Will there be among them Ukraine — is unknown, because there is still no decision on the provision of our country the new credit tranche from the IMF, without which it is extremely risky to conduct a placement of Eurobonds, especially on the eve of elections. Our country is already expensive borrowing of funds — recent placement of Eurobonds at the end of 2018, the country spent under 9-9,7% per annum.