The eurobond issue Raspadskaya-2012 is one of the best defensive instruments. We recommend to buy and hold the issue till maturuty date.

Name: 26/10/2011. UFS IC: The eurobond issue Raspadskaya-2012 is one of the best defensive instruments. We recommend to buy and hold the issue till maturuty date.
Creator: Cbonds
License: https://creativecommons.org/licenses/by/4.0/

26/10/2011 | UFS IC

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Due to the increase in funds on the company’s accounts by 62.0% the net debt/EBITDA ratio decreased to 0.16 (!) – which is one of the lowest levels among Russian public companies.

The total volume of highly liquid assets of the company is $424 million, which by 140.0% covers the volume of the eurobond the repayment.

Given the above mentioned, we believe that the credit risk of Raspadskaya is one of the lowest among mining and metallurgical companies. Now, Raspadskaya-12 with duration of 0.55 years is traded with the yield of 6.6% per annum on the bid price.

We think that the 6.6% yield doesn’t correspond to the low risks of the issuer, making Raspadskaya-12 one of the best instruments judging by the risk/return ratio in the eurobond market now. We recommend buying Raspadskaya-12 and holding it to maturity.

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