Published: January 7, 2013
The frontier market investment bank has signed a partnership deal with Russia’s URALSIB, which should help open the country’s domestic debt markets.
Exotix, the frontier markets boutique investment bank, has formed a strategic partnership with Russia’s URALSIB Securities Limited, a member of the URALSIB Financial Corporation.
The deal will give Exotix’ investors access to rouble-denominated primary and secondary fixed income markets, while allowing URALSIB to distribute non-domestic debt more widely through the Exotix banking network.
Foreign participation in the Russian bond market currently stands at just 5%. The partnership, along with the impending introduction of the Euroclear settlement platform, should help boost this figure.
As investors move towards emerging market bonds in search of yield, and local governments look to raise funds for infrastructure development, the increasingly liberalised Russian domestic debt market could prove an attractive proposition in 2013.