Issuers prefer bonds in other currencies

For the first time since 2000, the share of Eurobonds denominated in euros was less than half of the total volume of securities issued by European issuers. Low interest rates from the US Federal Reserve and tightening credit policy in Europe are making borrowing in dollars and pounds sterling popular, and high oil prices are increasing interest in ruble Eurobonds, experts say.

According to Financial News, citing Dealogic statistics, the total volume of bond issues among European companies increased this year by 17%, to $182.5 billion, while the volume of Eurobonds denominated in euros decreased by 13%, to $84 billion. which is 46% of the total volume of placements. The share of Eurobonds denominated in euros was less than half of the total volume of securities for the first time since 2000, when it was 42%. Last year, Eurobonds accounted for 62% of total borrowing.

Experts explain this trend by the continued low interest rates of the US Federal Reserve against the backdrop of a gradual tightening of the ECB's credit policy. Under these conditions, companies are rushing to borrow in dollars, even if they do not have an urgent need. Last week, Google, which has significant cash on hand, resorted to borrowing from the market for the first time, issuing $3 billion in dollar bonds: $1 billion in three-year bonds with a 1.25% coupon, $1 billion in five-year bonds at 2.125%, according to Bloomberg. $1 billion ten-year at 3.625%. Overall, last week was a record for the volume of dollar bonds issued by American companies—$53.7 billion.

13 percent

was a reduction in the volume of euro bonds issued by European companies in 2011, the European bond market grew by 17% during the same time

The situation is similar with bonds denominated in pounds. Since the beginning of the year, the global volume of bonds denominated in pounds has grown by 131% compared to the same period last year, amounting to £14.4 billion. Russian issuers are also borrowing in pounds. Thus, this year, Russian Railways placed 20-year Eurobonds worth £350 million. Given the high demand for securities, the company announced that it plans to make a decision on a new issue of up to £1 billion by the end of May.

Dealogic notes an increase in interest in ruble securities. Since the beginning of this year, they have been issued for a total amount of 124 billion rubles, of which 90 billion rubles. accounts for the sovereign Eurobonds that the Ministry of Finance placed in February and May (see Kommersant on May 20 ). “For investors, these are quite attractive securities. Now the bet is on high oil prices, which means that the ruble will strengthen and ruble Eurobonds can bring good income,” says Alfa Bank analyst Stanislav Bozhenko.

As for the euro, bonds denominated in this currency have never been of great interest to Russian issuers, experts say. Thus, since 2000, only 44 issues of securities of 18 issuers have been placed in this currency for a total amount of €16.002 billion (currently there are 20 issues worth €10.714 billion in circulation). At the same time, interest in borrowing in euros was constantly declining: if in 2006 there were 19 issues of Eurobonds denominated in euros, then in 2007 there were nine, in 2008 - two, in 2009 - one, and last year five months of this year - not a single one. “The main players in the Eurobond market on the Russian side are mainly banks and companies exporting products, and therefore payments are made in dollars, and it is most convenient for them to borrow in this currency,” says Mr. Bozhenko. He adds that in this case, currency risks are minimized, and Russian companies have not yet learned how to hedge them.

Alexander Mazunin, Evgeniy Khvostik

The securities could not stand the euro