Recently, after completing his visit to China, Russian President Putin announced that Russia would issue its second sovereign bonds denominated in the Chinese yuan.
According to latest reports released by the Russian Ministry of Finance on the 28th, the subscription for this 10-year bond began that day. The coupon rate will be no higher than 8%.
The Russian Ministry of Finance previously stated that each bond issued has a face value of 10,000 yuan. Bond purchases and coupon payments can be made in either RMB or rubles, with investors having the option to choose their preferred method.
According to Bloomberg, Russia issued its first sovereign bonds in RMB last year. The issuance was carried out in two batches, raising a total of 20 billion RMB. This money was used to cover the financial deficit caused by reduced military expenditures and oil revenues.
Russian Foreign Trade Banks chief analyst, Mikhail Vasilyev, previously stated that the main purpose of issuing RMB sovereign bonds is to gradually replace existing US and euro sovereign bonds that are nearing maturity. This initiative serves as a pricing benchmark for companies that issue RMB bonds, especially those with long-term terms.
