Russian Giants Eye China's Panda Bonds Amid Western Market Lockout

Top Russian corporations, including nuclear giant Rosatom and energy behemoth Gazprom, are exploring the issuance of yuan-denominated 'panda' bonds. This move comes as Western financial markets remain inaccessible following Russia's military actions in Ukraine.

Reports indicate that China is willing to reopen its bond market to significant Russian energy entities. This development was underscored by the recent discussions between Chinese President Xi Jinping and Russian President Vladimir Putin, who emphasized their 'no limits' partnership.

While Chinese ratings agencies have assigned high credit ratings to Russian firms, enabling potential debt issuance in China, approvals from Chinese regulators remain a hurdle. Additionally, prospective buyers must consider the ramifications of possible U.S. and European secondary sanctions.

(With inputs from agencies.)