The first savings Bank entered the market of domestic debt


The first savings Bank placed bonds in the domestic market. The country’s biggest Bank took 10 billion rubles for five years (with a two year offer), the coupon rate is 10%, the yield of 10.25%.

According to a source in one of investment banks, the bid book was oversubscribed more than twice. “The book was strongly oversubscribed, we can say that the accommodation was very successful, especially if we consider that some market participants could not buy savings bonds, because of the sanctions,” says the bond trader IK “ATON” Mikhail Vashchenko.

“Final coupon rate was 0.5 PP below the initial benchmarks, and this is a significant decline for such a short release. While this is the lowest yield after sovereign issues. Even the Railways, which is a quasi-sovereign borrower a higher spread to OFZ,” says Vashchenko.

Today Russian Railways closed the book of applications for the placement of four-year bonds for 10 billion rubles, the rate was set at the level of 10.3% per annum.

Funding bonds cost Sberbank more expensive than raising funds on deposits of the population (the highest rate on retail deposits Sberbank is 9,52%), but cheaper than corporate deposits or funding from the Central Bank, said the analyst BCS Olga Naidenova. “At the same time 10 billion for Sberbank, with its balance of more than 27 trillion rubles — this is a very small amount. Besides, we must remember that bonds are guaranteed long-term liquidity,” she adds.

With it agrees the analyst of PSB Dmitry Monastyrshina: “From the point of view of the resource base of the savings Bank borrowed 10 billion rubles are very minor and do not reflect the need of the Bank in liabilities. Rather it is an attempt to test the market for ruble-denominated bonds in the framework of the program of Sberbank to attract £ 200 billion through bonds”. According to Monastyrshina, the bond placement provides for two-year offer, and it means that the Bank attracted long-term resource that is needed to meet the standard liquidity by Basel III: the deposits are considered short-term liabilities, since they can be withdrawn at any time.

In mid-September, Sberbank launched the first in its history ruble bonds by placing non-market subordinated debt by 18.5 billion rubles in favor of his pension Fund — NPF of the savings Bank. The Fund is a “safe investment with a good yield, and this investment is in support of the supplementary capital”, explained the Deputy Chairman of Sberbank Alexander Morozov. He also noted that “it’s a tiny volume in savings”.