Russian bank issues bonds in yuan

Sberbank of Russia will issue corporate bonds in yuan. Earlier, the bank announced further placements of Eurobonds. These steps will circumvent the sanctions. Landesbank Baden-Württemberg is ready to help Sberbank in placing Eurobonds.

In February 2014, Sberbank issued subordinated Eurobonds with a maturity of ten years, which are converted into a billion dollars and an interest rate of five percent. Bond issuance is an important business segment for investment banks.

Earlier, the US government warned the largest US investment banks not to participate in the placement of Russian Eurobonds, as such participation could undermine the sanctions against Russia.

The Russian Ministry of Finance sent inquiries to banks that could facilitate the placement of Eurobonds. Thus, Landesbank Baden-Württemberg acted as a co-arranger for the placement of corporate bonds issued by SGL Carbon.