INTERVIEW – VTB sees no problems with NPL growth, expects more Central Bank breaks

Russian issuers may shift their priority from the dollar to euro to make it the borrowing currency when placing Eurobonds, Andrey Solovyov, the Head of the VTB Capital debt capital markets management department, told reporters at the VTB Сapital forum "RUSSIA CALLING!".
“I expect a natural increase in placements in euros as sanctions mostly revolve around the dollar. We see the euro as a way forward. The affairs with Euro-rubles, which were quite active some time ago, will also resume shortly. Investors and issuers will try to switch from dollars to euros," he said.
In the future it will be possible to place Eurobonds of Russian issuers in British pounds. "I think that leading Russian companies, like Gazprom may consider this possibility," the expert believes.
"No doubt, there will be placements in euro-rubles as well, because for many Russian issuers, like FGC UES, RusHydro, Russian Railways etc. the ruble remains the main currency, as they have their income in rubles", - Solovyov added. The Swiss franc is another crucial currency, as a great amount of Russian money is transferred to Swiss offshores. In Switzerland there are also a lot of investors exploring where to invest, he also said.
Placements in the Chinese yuan are not a priority today — it is easier for companies to use their traditional currency. “RusHydro, Rosatom, some banks, including VTB, made some of their placements in yuans. However, the swap market (buying and selling assets with different execution dates) is quite narrow, so that, a placement in yuans may help save a certain sum, but it can be lost with a reverse swap to a regular currency, " Andrey Solovyov also said.