Report
Alisa Zakirova ...
  • Anton Stroutchenevski
  • Artem Vinogradov
  • Ekaterina Sidorova
  • Igor Rapokhin
  • Olga Sterina
  • Research Team

Debt Markets Today - October 14, 2021. Russian Weekly Inflation, External Debt; OFZ Auctions Review; MMK and NLMK 3Q21 Operating Update

CIS EUROBOND MARKETThe CIS Eurobond market rebounded yesterday, tracking global markets, as the 10y UST yield dropped to 1.54%. Against this backdrop, long-dated Russian sovereigns rose in price by 1.1-1.9 pp. Meanwhile, Kazakh issues outperformed with 2.3-2.7 pp gains. We maintain our recommendation to buy the Kazakhstan 45 and believe that the current yield premium it is trading at to the Russian curve is temporary and that the spread is set to return to negative territory (see our daily story ). Among other regional sovereign Eurobonds, the Armenia 29 remained on the advance, adding 0.5 pp.GOVERNMENT DEBTOFZs closed 5-8 bps lower in yield yesterday thanks to a successful auction. The 10y OFZ 26239 (July 2031) returned to the 7.45% mark. The main driver for the drop in yields was local demand, although foreigners were also net buyers. Trading volumes on the Moscow Exchange totaled R19 bln, which is below the average daily volume over the last month.STORIES> Weekly inflation in Russia edges down to 0.22%> Russia's external debt grows in 3Q21 due to SDR disbursement from IMF> Light supply easily digested at weekly OFZ auctions> MMK releases 3Q21 trading update: Steel product sales dropped 17% Q-o-Q> NLMK posts 3Q21 operating update
Underlyings
Magnitogorsk Iron & Steel Works

Magnitogorskiy Metallurgicheskiy Kombinat PAO, formerly Magnitogorskiy metallurgicheskiy kombinat OAO, is a Russia-based company, active in the steel industry. Its main products are sinter, coke, iron, crude steel, rolled products and ore materials. The Company offers a wide range of products such as wire rod, rebars, square bars, strips, round bars, among others. It is also involved in the coal ore mining, processing of ore materials, sale of ferrous metal products and others. Magnitogorskiy metallurgicheskiy kombinat OAO operates as a supplier for such industries as: pipelines, vehicles, railway, construction and shipbuilding, among others. Its subsidiaries include Lys'venskaya Metallurgicheskaya Kompaniya OOO, among others. The Company operates domestically, as well as exports its products to the Commonwealth of Independent States (CIS) countries, Asia, the Middle East and Europe.

Magnitogorsk Iron & Steel Works (GDR)

NLMK

Novolipetsk Steel is a vertically integrated steel manufacturing and production group based in Russia. Co. specializes in the manufacturing of high-quality hot and cold rolled steel in a variety of grades and sizes. Co. is also engaged in production and sales of flat steel products including slabs, hot rolled and cold rolled sheet, electrical steel, galvanized steel, cold rolled sheet with polymeric coatings. In addition, Co.'s areas of manufacturing include sintering, coke production, blast furnace production, steel-making, hot and cold-rolled flat steel production, galvanized and prepainted steel production. Co. exports its products to 70 countries around the world.

NLMK (GDR)

Provider
Sberbank
Sberbank

​Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.

Analysts
Alisa Zakirova

Anton Stroutchenevski

Artem Vinogradov

Ekaterina Sidorova

Igor Rapokhin

Olga Sterina

Research Team

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