Moscow Exchange resumed trading in Eurobonds

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On July 23, 2022, the Moscow Exchange resumed trading in Eurobonds of the Ministry of Finance of the Russian Federation and VEB.RF issued in dollars and euros. Thus, Russian investors have the opportunity to invest their funds more profitably, especially after many banks introduced negative commissions on foreign accounts and zero deposits.

Eurobonds are bonds issued in a currency that is foreign to the issuer – a state or a company. You can read more about all the specifics of Eurobonds here .

In this article, we will consider which securities were admitted to trading and which of them may be of interest to Russian investors.

Let’s start the review with the technical component – the mode of trading in Eurobonds. The Moscow Exchange has approved the following trading schedule:

  • from 9:50 to 18:50 in the main trading mode (9:50–10:00 — opening auction, 10:00–18:40 — trading period, 18:40–18:50 — closing auction);
  • from 9:30 to 19:00 in RPS / RPS with the Central Committee.

Negotiated trades mode (NTP) is an opportunity to conclude a trade without preliminary deposit of funds with a deferred execution date. In this format, it is possible to conclude targeted and non-addressed transactions. For more details on the RPS trading regime with the CCP, please click here .

The Moscow Exchange also confirmed that trading in these instruments will be carried out in the nominal currency, that is, in US dollars and euros, as well as in rubles, as it happened before, until the suspension of trading. Liquidity of Eurobonds at the auctions will be provided by market makers .

Unblocked Eurobonds

The Moscow Exchange admitted 17 debt securities to trading, 14 of which were issued by the RF Ministry of Finance, and three by the VEB.RF state corporation . Trading in other corporate Eurobonds may be resumed immediately after they confirm in writing their intention to make payments on such instruments in rubles or to exchange such instruments for bonds issued under Russian law.

Bond No. 1. RUS−28

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: XS0088543193.
  • Denomination – 1000 dollars.
  • Lot size — 1 bond.
  • Repayment date: 06/24/2028.
  • Yield to maturity: 3.65%.
  • Coupon: fixed, every 182 days, $63.75, 12.75% per annum.
  • The cost of one bond on July 15, 2022: $1480

Coupon payment schedule

Bond No. 2. RUS−30

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: XS0114288789.
  • Nominal – $0.165
  • Lot size — 1000 bonds.
  • Repayment date: 03/31/2030.
  • Yield to maturity: 0.42%.
  • Coupon: fixed, every 182 days, $0.0061, 7.5% per annum.
  • The cost of one bond on July 15, 2022: $19.3

Bond No. 3. RUS−42

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: XS0767473852.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Date of redemption: 04/04/2042.
  • Yield to maturity: 3.38%.
  • Coupon: fixed, every 182 days, $5,625, 5.625% per annum.
  • Cost per bond as of July 15, 2022: $208,000

Next payment schedule

Bond No. 4. RUS−23

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: XS0971721450.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 09/16/2023.
  • Yield to maturity: -2.27%.
  • Coupon: fixed, every 182 days, $4,875, 4.875% per annum.
  • Price per bond as of July 15, 2022: $217,000

Coupon payment schedule

Bond No. 5. RUS−43

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: XS0971721963.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 09/16/2043.
  • Yield to maturity: 3.3%.
  • Coupon: fixed, every 182 days, $5,875, 5.875% per annum.
  • Cost per bond as of July 15, 2022: $277,000

Next payment schedule

Bond No. 6. RUS−26

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A0JWHA4.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 05/27/2026.
  • Yield to maturity: 1.52%.
  • Coupon: fixed, every 182 days, $4,750, 4.75% per annum.
  • Price per bond as of July 15, 2022: $224,000

Coupon payment schedule

Bond No. 7. RUS−27

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A0JXTS9.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 06/23/2027.
  • Yield to maturity: 2.91%.
  • Coupon: fixed, every 182 days, $4,750, 4.75% per annum.
  • Price per bond as of 07/15/2022: $212,000

Coupon payment schedule

Bond No. 8. RUS−47

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A0JXU14.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 06/23/2047.
  • Yield to maturity: 4.56%.
  • Coupon: fixed, every 182 days, $5,250, 5.25% per annum.
  • The cost of one bond as of 07/15/2022: $220,000

Next payment schedule

Bond No. 9. RUS−29

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A0ZYYN4.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 03/21/2029.
  • Yield to maturity: 3.51%.
  • Coupon: fixed, every 182 days, $4375, 4.375% per annum.
  • Price per bond as of July 15, 2022: $210,000

Coupon payment schedule

Bond No. 10. RUS−25 EUR

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A0ZZVE6.
  • The nominal value is 100,000 euros.
  • Lot size — 1 bond.
  • Repayment date: 04.12.2025.
  • Yield to maturity: 4.33%.
  • Coupon: fixed, every 365 days, 2875 euros, 2.875% per annum.
  • The cost of one bond on July 15, 2022: 100,500 euros.

Coupon payment schedule

Bond No. 11. RUS-35

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A1006S9.
  • Nominal – $200,000
  • Lot size — 1 bond.
  • Repayment date: 03/28/2035.
  • Yield to maturity: 3.16%.
  • Coupon: fixed, every 182 days, $5,100, 5.1% per annum.
  • Price per bond as of July 15, 2022: $239,800

Next payment schedule

Bond No. 12. RUS−27 EUR

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A102CK5.
  • The nominal value is 100,000 euros.
  • Lot size — 1 bond.
  • Repayment date: 11/20/2027.
  • Yield to maturity: 2.59%.
  • Coupon: fixed, every 365 days, 1125 euros, 1.125% per annum.
  • The cost of one bond on July 15, 2022: 98,460 euros.

Coupon payment schedule

Bond No. 13. RUS−32 EUR

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A102CL3.
  • The nominal value is 100,000 euros.
  • Lot size — 1 bond.
  • Repayment date: 11/20/2032.
  • Yield to maturity: 1.85%.
  • Coupon: fixed, every 365 days, 1850 euros, 1.85% per annum.
  • The cost of one bond on July 15, 2022: 100,000 euros.

Coupon payment schedule

Bond No. 14. RUS−36 EUR

General information:

  • The issuer is the Ministry of Finance of Russia.
  • Issue ISIN: RU000A1034K8.
  • The nominal value is 100,000 euros.
  • Lot size — 1 bond.
  • Repayment date: 05/27/2036.
  • Yield to maturity: 3.1%.
  • Coupon: fixed, every 365 days, 2650 euros, 2.65% per annum.
  • The cost of one bond on July 15, 2022: 85,222 euros.

Coupon payment schedule

Rice. 13. Source: Moscow Exchange

Bond No. 15. VEB PBO1R8

General information:

  • The issuer is VEB.RF.
  • Issue ISIN: RU000A0JXU48.
  • Denomination – 1000 dollars.
  • Lot size — 1 bond.
  • Repayment date: 12/15/2022.
  • Yield to maturity: 1.8%.
  • Coupon: fixed, every 182 days, $21.19, 4.25% per annum.
  • The cost of one bond on July 15, 2022: $1010

Coupon payment schedule

Rice. 14. Source: Moscow Exchange

Bond No. 16. VEB1P−23V

General information:

  • The issuer is VEB.RF.
  • Issue ISIN: RU000A102K96.
  • Denomination – 1000 dollars.
  • Lot size — 1 bond.
  • Repayment date: 12/17/2025.
  • Yield to maturity: 3.12%.
  • Coupon: fixed, every 182 days, $16.21, 3.25% per annum.
  • The cost of one bond on July 15, 2022: $1,005

Coupon payment schedule

Rice. 15. Source: Moscow Exchange

Bond No. 17. VEB1P−30V

General information:

  • The issuer is VEB.RF.
  • Issue ISIN: RU000A103FY7.
  • Denomination – 1000 dollars.
  • Lot size — 1 bond.
  • Repayment date: 07/23/2026.
  • Yield to maturity: 3.41%.
  • Coupon: fixed, every 182 days, $16.85, 3.38% per annum.
  • The cost of one bond on July 15, 2022: $1,000

Coupon payment schedule

Rice. 16. Source: Moscow Exchange

What is the result?

Of the 17 Eurobonds presented, private investors may be interested in five: RUS-28, RUS-30, VEB PBO1R8, VEB1P-23V, VEB1P-30V, because their purchase requires about $ 1,000, while the remaining 12 instruments cost from 100,000 euros. In addition, the issue of VEB PBO1R8 can be removed from this five, since it will be redeemed at the end of 2022.

Comparison of yields of Eurobonds with foreign currency bank deposits in the Russian Federation

Not an investment recommendation.

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