Victor Orekhov, head of Debt Market Department, speaks at VII Federal Investment Forum at the “Issuing Company” conference

On 17 November 2010 Victor Orekhov, head of the Debt Market Department in URALSIB Capital IC, spoke at a conference entitled “Issuing Company” that was held within the framework of VII Federal Investment Forum. His presentation was devoted to “Bond Markets through the Eyes of Issuing Companies: Current Opportunities and Future Outlook”.

The presentation by Mr. Orekhov contained analysis of the current ruble debt market. The speaker noted specifically that ruble-denominated bonds have become the main debt instrument for Russian companies. Mr. Orekhov pointed out that amount of borrowing has exceeded the pre-recession level and that now the bond market is open for all issuers rated Single-B and above, and that they can borrow amounts greater than before the recession.

According to Victor Orekhov, ruble bond yields continue to drop even as the average terms get longer. Fixed commission for organizing bonds placement is currently at a historical low, but the organizers often do not see it as the main source of their income. Eurobonds in the meantime look far more attractive in terms of yield, especially in view of hedging costs for exchange risk.

As for the future of the ruble debt market, Mr. Orekhov expects that in 2011-2012 the market will see growth in the amount of offers from companies in transport, energy, oil and gas, consumer and banking sectors, as companies press ahead with their investment programs.

November 29, 2010