Caixin
Sep 17, 2022 04:56 AM
FINANCE

Russia’s Rosneft Raises $2.15 Billion in Record Yuan Bond Sale

What’s new: Russia's largest oil producer Rosneft completed a yuan-denominated bond placement worth 15 billion yuan ($2.15 billion), the company said, making it the third Russian giant to borrow through yuan bonds.

The deal marks the biggest bond sale ever by a Russian business. The coupon rate of the 10-year bonds was set at 3.05% a year, according to bond documents. Proceeds will be used to finance the company’s investment programs.

Rosneft originally planned for a bond sale of 10 billion yuan but increased the size due to high demand.

The context: Rosneft joined Russia's largest gold producer PJSC Polyus and aluminum producer United Co. Rusal International PJSC to sell bonds in Chinese currency as Russian businesses increasingly turn to China and the yuan for borrowing in the face of sweeping sanctions imposed by Western countries over Russia’s invasion of Ukraine in February.

Polyus issued 4.6 billion yuan of yuan-dominated bonds in early September, following Rusal’s 4 billion yuan bond sale in August.

Russian companies are tapping into the yuan bond market to cut their dependence on the American dollar amid sanctions imposed by the U.S. and others, including restrictions on the use of dollars in international transactions. This has made it hard for Russian companies, banks and investors to do business, forcing them to turn to alternative currencies.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
Caixin China Biz Roundup: China Warns Not to Bet Against the Yuan
00:00
00:00/00:00