Russia’s central bank may offer OFZ state bonds in yuans by July

NOVOSIBIRSK, Jan 28 (PRIME) -- The Russian central bank may offer OFZ bonds denominated in Chinese yuans by July after the countries launch mutual depository and settlement services, First Deputy Chairman Sergei Shvetsov told reporters on Thursday.

“In order to facilitate the issue, our depositors must establish a so-called depositary and settlement ‘bridge’. Today the Russian National Settlement Depository cooperates with two Chinese depositories,” he said.

“We are in close touch at the level of regulators; a meeting on a cooperation scheme is likely to take place in March. I expect that the ‘bridge’ will be established during the first half year and we will have an opportunity to place OFZ bonds, respectively.”

The launch of depositary and settlement services between Moscow and Beijing will allow Russia to raise capital from Chinese continental investors.

“Why is it important to start with OFZ bonds? Because pilot securities always include best quality bonds. The Chinese industrial investors, who we want to attract, are unfamiliar with the situation in Russia,” he said, adding that it will be easier to sell to them Russian state bonds than securities of particular industries and companies.

The yuan-denominated OFZ bonds are likely to mature in five or seven years, and a final decision on their maturity date will be made by the Finance Ministry.

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