BCP Securities Eastern European Corporate Weekly

BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities Eastern European Corporate Weekly
October 29, 2014
Eastern European Corporate News and Commentary
Russia

VimpelCom (VIP): This week media reports appeared that VimpelCom (Ba3/BB/-), a leading global telecom
company with main assets in Russia, continues its talks with Hutchison Whampoa regarding Wind. Complete details
are not available, however it was reported that a full sale of Wind is not likely. Wind’s high indebtedness may also
play a role in making or breaking the deal. In Italy, Wind is the third largest telecom company with after Telecom
Italia and Vodafone, and the fourth largest Italian telecom company is Three, a subsidiary of Hutchison Whampoa.
In 2Q14, VimpelCom’s Italian business contributed 29% of revenue and 27% of EBITDA, while its sales declined
organically 9% y/y. Wind is the most indebted among VimpelCom’s assets – it carries almost half of the company’s
consolidated debt (US$14 billion out of US$29 billion at the end of 2Q14). Wind’s high debt burden monopolizes
VimpelCom’s cash flow, which otherwise could have been used for developing the company’s Russian market,
where the company has been losing its ground to its competitors, MTS and MegaFon. In case the deal goes through,
we would not be surprised if VimpelCom deconsolidate its Italian asset. The news, in our view, is positive for the
company’s Eurobonds. During the first half of the year, VimpelCom completed the optimization of its expensive
Italian debt: Wind’s Eurobonds were refinanced via a new US$8 billion issue; this exercise would allow
VimpelCom to save ~US$400 million annually. Before the end of this year, VimpelCom is poised to receive US$4
billion (including dividends) from the sale of a 51% stake in its Algerian asset, Djezzy. The company plans to use
the funds to further reduce its debt burden, which would also yield an estimated annual savings of ~US$300 million
in interest payments. In our view, the sale, even partial, of Wind assets would improve the company’s credit
portfolio and allow the company to reach its net leverage goal faster. Among the company’s Eurobonds, we prefer
VIP 18s (YTM of ~ 6.9%) and VIP 21s (YTM of ~7.5%), which are trading with a premium of 40bps and 25bps,
respectively, to the company’s own yield curve. The company plans to release its 3Q14 IFRS financials on
November 12, 2014.

MTS (MOBTEL): On October 27, 2014, MTS, the leading telecommunications provider in Russia and the CIS,
announced that it has signed an agreement with Sberbank to open a non-revolving line of credit for a total amount of
RUB50 billion (~US$1.18 billion) with a maturity in September 2021 and has amended terms of an existing credit
agreement in the amount of RUB20 billion (~US$471 million). The latter facility was obtained in April 2014 with
an original maturity in July 2015; the maturity was amended to September 2017.

Evraz (EVRAZ): This week Evraz North America is conducting a road show in support of its US$500 million
Eurobond. Earlier, Evraz said that it may consider filing for an IPO and issuing Eurobonds via its North American
subsidiary: Evraz North America filed for an IPO on September 26, 2014. The company plans to use the proceeds to
redeem part of a subordinated loan from another part of the Evraz group. The bonds with a five year maturity and a
call feature in two and a half years will be 144a only and senior secured.

Norilsk Nickel (GMKNRM): Last week, Norilsk Nickel said that an interim dividend may be in the amount of
US$2.78 billion. The company will hold an EGM on October 31, 2014.

TMK (TRUBRU): On October 28, 2014, Reuters reported that TMK (B+/B1/-), a global pipe producer, is
considering an IPO of its North American subsidiary (TMK-IPSCO), which consists of ten pipe producing facilities,
and was acquired by the company in 2008-2009 for US$1.6 billion. Earlier the company announced its plans of an
additional share issue in Russia. There were earlier reports that TMK intends to issue 6% in additional shares
specifically for Rosnano, and use the raised funds for the optimization of its debt portfolio. Reportedly, the company
plans to raise US$1 billion between the two share issues. Mr. Dmitry Pumpyansky, Chairman of TMK, confirmed
the company’s plans to lower its net leverage to 2.5x by the end of 2016/beginning 2017 from a current ratio of 3.63.8x. TMK, which sells ~4.5 million tons of steel pipes annually to oil and natural gas producers, in some ways
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
benefitted from Russia’s chilled relationship with the West: due to sanctions, many international producers stopped
supplying Russia and the company received additional orders. Plus, strengthened ties with China expedited the
construction of the US$20 billion Power of Siberia (PoS) natural gas pipeline (Gazprom’s project). The PoS will
need a lot of pipes to be up and running in two years and TMK hopes to supply ~20-25% of the required 2.5 million
ton amount. Another important client of TMK is Transneft, Russian pipeline monopoly, which would require
~500,000 tons of pipes for the next 5-6 years (TMK supplies 25% of Transneft’s pipes and intends to keep its
market share). TMK also sees a strong demand in the US from shale gas producers.

Promsvyazbank (PROMBK): On October 28, 2014, Moody’s confirmed the rating of Promsvyazbank at ‘Ba3’ with a
negative outlook. The rating affirmation by the agency reflects an easing in the negative credit factors at the bank
during the second and third quarters of 2014, namely: (1) the bank’s ability to strengthen its capital base as planned
(For the first nine months of 2014, the bank added US$533 million to its capital position. As a result, Tier I CAR
and Total CAR rose to 8.71% and 13.38%, respectively, in 2Q14 from 8.5% and 13.0%, respectively, in 1Q14. The
bank’s plan for the year is to add US$700 million to its capital position and PSB is quite certain that it would be able
to deliver); (2) lifting pressure on the bank’s asset quality—NPLs (90+ days) were at 10.8% at the end of 2Q14 vs.
11.4% at the end of 1Q14; and (3) the stabilization of its earning-generating capacity—following two consecutive
loss-making quarters (4Q13 and 1Q14), the bank returned to profitability in 2Q14, albeit with a low ROAA of
0.15%. The rating’s negative outlook is a result of the “challenging operating environment” of Russia.

Phosagro (PHORRU): On October 23, 2014, Phosagro, a leading global vertically integrated producer of phosphatebased fertilizers, reported its 9M14 operating results. During the first nine months of the year, the company’s
production grew 5.6% y/y whilst its sales grew 4.3%. The nitrogen-based fertilizers performed the best with
production up by 12.2% y/y to 1,033 kmt and sales up by 16.1% to 1,080 kmt during the same period of time.
Production of apatit declined slightly 3.2% to 6,409 kmt, but the sales plummeted 15.7% during the same period of
time to 2,557 kmt. The production of phosphate-based fertilizers was moderately up - +3.8% to 3,556 kmt; whilst
sales saw a minimal increase of 1.1% during the same period to 3,518 kmt. Phosagro’s production facilities continue
to operate at near-100% capacity. The company reported a solid demand within the first three quarters of 2014,
which has enabled it to increase substantially its sales of both phosphate- and nitrogen-based fertilizers. The
company continues to adapt its product mix in response to demand (seasonal) and the pricing environment, which
has significantly improved from last year, increasing to over US$500 during the summer before softening slightly
towards the end September on the back of low crop prices. Nonetheless, the price of a tonne of DAP (FOB Tampa)
remains 30% higher than it was in mid-October last year at US$470 per tonne now vs. US$360 per tonne a year ago.

Fitch on Russian Banks: On October 28, 2014, Fitch downgraded three banks in Russia; while affirming the ratings
of three other Russian banks. Home Credit & Finance Bank (HCBF) saw its rating downgraded to ‘BB’ from ‘BB-‘;
and the ratings of Russian Standard Bank (RSB) and Orient Express Bank (OEB) were downgraded to ‘B’ from
‘B+’. All three outlooks are negative. The rating of OTP Bank Russia was affirmed at ‘BB’ and the ratings of
Tinkoff Credit Systems and Sovcombank were affirmed at ‘B+’, all with stable outlooks. According to the agency,
the downgrades of HCFB, RSB and OEB reflect a loss-making performance of the three banks, the weakest among
other Russian banks, as well as pressure on regulatory capital, especially, at RSB. The negative outlook on these
three banks reflect the potential for asset quality and performance to remain weak, given the slowdown in the
Russian economy, further eroding capital. The affirmation of TCS reflects its profitable performance to date, driven
by significantly less severe asset quality deterioration and higher loan yields. The stable outlook reflects Fitch's view
that they should be able to contain credit losses at levels that allow them to remain profitable, or at least avoid
significant erosion of capital. TCS's ratings are also supported by high capital ratios. Fitch also published a special
report on Russian consumer finance bank, which expresses agency’s opinion on the sector. Fitch anticipates lower
profitability, capital ratios under pressure and tighter regulatory oversight on a backdrop of weaker macro
environment.

Russia (RUSSIA): On October 24, 2014, S&P confirmed Russia’s ‘BBB-‘ rating with a negative outlook. The
agency expects that the Russian economy will grow ~1.0% every year until 2018, but is concerned about the asset
quality of the country’s financial system. Russia has benefitted for a prolonged period of high oil prices and fiscal
discipline; however, the rating agency underlines the country’s overreliance on hydrocarbons. A week earlier, on
October 17, 2014, Moody’s downgraded the rating of Russia to ‘Baa2’ from ‘Baa1’ with a negative outlook (one
notch above the S&P’s rating).
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Ukraine

Ukraine (UKRAINE): On October 26, 2014, Ukraine held its parliamentary elections, which did not include the
country’s eastern regions and the Crimea. The Ukrainian Parliament consists of 423 seats, of which 225 are elected
under the party voting lists and 198 are elected under geographical area voting. According to the exit polls, the
western oriented parties did well: the Poroshenko Bloc leads with 22-24% of the popular vote, closely followed by
the Prime Minister Yatsenyuk party the People’s Front with 20-22%. The Samopomich (Selfhelp) party of Mr.
Andriy Sadovyi, the Mayor of Lviv, is in third place with 11-14%. The outcome appears to indicate that the
partnership between the president and prime minister will continue and a new cabinet should be formed quickly.

Mriya (MRIYA): On October 24, 2014, Mriya, a Ukrainian agricultural company with main assets located in
Western Ukraine (the Tirnopol region), held a meeting with its creditors in Kyiv (Ukraine). The meeting
commenced at 1:00pm local time (6am NY Time) and lasted for just over two hours before the phone connection
was interrupted. The meeting was led by the company’s new CFO, Mr. Alexander Chernyavsky, who was hired just
over a month ago after the company’s CFO, Mr. Andriy Buryak had resigned from his position in early August
2014. Alexander Chernyakovsky came to Mriya from Ukrtelecom and has a vast experience in debt restructuring
and successful negotiations with creditors – during the last financial crisis (2008), Mr. Chernyakovksy managed cost
optimization of Interpipe, and in 2011 Mr. Chernyavsky, who at the time managed finances of a group owned by
Mr. Viktor Pinchuk, signed an US$887 million debt restructuring agreement. Mr. Chernyakovsky started by saying
that the company understands the problem, recognizes its obligation and is committed to finding a solution. In early
August 2014, Mriya announced that its financial condition deteriorated, which required steps for restoration of its
financial viability. Mriya worked with Deloitte to come up with the plan. Key Points: (1) Keep the company running
– the company had to choose either to pay its debt or continue working (the company employs thousands people
after all), and chose the latter. Mriya was affected by a 46% drop in grain prices, but beside grain, the company is
also involved in growing potatoes and sugar beets, both of which are primarily for domestic market. Both potato and
sugar beet growing are very capital intensive, and sugar plans are very energy intensive and affected by natural gas
prices. Basically, the company is dealing with a perfect storm, when a number of negative factors came together at
the same time: geopolitical situation in the region, unstable political and economic environment, drop in global grain
prices; (2) Modernization of the business structure – the company, which was created more than 20 years ago, has a
very complex structure: multiple businesses and assets (grain, sugar assets, potato business, trading arm, etc.) in
various sectors. The goal is to bring them all into one group, to simplify and streamline the company’s structure. (3)
Restructuring – according to the company, the restructuring process will take at least one year, so, tentatively, the
restructuring day is October 1, 2015. Before the restructuring process can be officially started, the company needs to
re-organize itself into a group and produce audited financial statement. Presently, the group is not consolidated. (4)
Treating of creditors – the company’s goal is to preserve itself and to stay alive; thus, the plan, which includes a
normalization of capital structure, i.e. haircut, is as follows: (a) Bi-lateral lenders: will be paid interest at 1.75%; (b)
Leasing companies: no haircut, amortization over five year period starting next year; (c) Bondholders and ECP
holders: 66% haircut, 10-year maturity extension and a 10% annual coupon. The company proposed: (i) Implement
moratorium on individual adgendas for the period of negotiations – let the company survive and keep the costs down
(the company budgeted US$10 million for its restructuring costs). Mriya also created a Dataroom for the purpose of
disclosing information to the bondholders, who by registering in the Dataroom agree to act only after consulting
with the company; (ii) Organizing a Creditors’ Committee to properly represent creditors and efficiently work with
the company’s management – an informal committee has been already organized and wrote to the company, but did
not receive answers. The company wants to see a formal Creditors’ Committee with lawyers and advisors on board;
(iii) Consolidation – For the next nine months, the company will focus on consolidating and creating of the group,
following which it will produce its audited financials. The company does not plan to publish management accounts
in the meantime as they do not reflect the actual order of things. This is only the beginning, but our first impression
is a disappointing one.

Avangard (AVINPU): On October 24, 2014, Avangard, Ukraine’s largest egg and egg products producer, announced
its 9M14 operating results. Laying Hens: The company’s total poultry flock was down 18% y/y to 25.9 million
birds, whilst the amount of laying hens decreased by 25% to 18.5 million birds. This was previously disclosed by the
company and was due to the ongoing unrests in the Eastern part of the country: the company decided against the
renewal of poultry flock at the farms located in the Donetsk and Lugansk regions. Fresh Eggs: the company
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
produced 5.114 billion eggs (-0.1% y/y) with the sale to third parties declining 6% y/y and the export sales soaring
32% y/y; average prices grew 9% y/y. The company sold 36% of its total sales to the third parties via retail chains
under the “Kvochka” brand. Egg Products: the company increased the processing of fresh eggs by 20% y/y to 1.518
billion pieces, as a result of which the production of dry egg products increased by 15% y/y to 17,739 tons. In
August 2014, Avangard received Kosher certification on its fresh eggs and egg products, and presently the company
is working on its first shipment to Israel. At the end of September 2014, Avangard’s Imperovo Foods received a
certificate allowing it to export its egg products to the EU countries.

Ukreximbank (EXIMUK): Recently, Ukreximbank, Ukraine’s second largest state bank and the third largest bank in
the country overall, released its 9M14 results under the local accounting standards. At the end of 3Q14, the bank’s
assets were UAH131.5 billion (+40% YTD). This sizable growth was thanks to a 32% YTD expansion of the bank’s
loan portfolio, which is dominated by corporate loans. At the end of the reporting period, the bank had a sizable
liquidity cushion of US$5.6 billion, including US$1.12 billion in cash and equivalents, vs. US$1.48 billion in
Eurobond debt. The bank’s Eurobond with the shortest maturity EXIMUK 15 was featured in our recent BCP
Securities Quarterly as a part of a swap recommendation: UKRAINE 15s into EXIMUK 15s.
Turkey

Yasar (YASAR): This week, Yasar (B2/-/B), a Turkish dairy and paint producer, announced its road show in support
of a possible Eurobond placement. Presently, the company has one Eurobond outstanding – a US$250 million paper
with maturity in October 2015.
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Russia Banks
Indicative Prices -- Russian Banks
Name
AK BARS BANK 8.75% 15
AK BARS BANK 8% 22
ABH FINANCIAL 4% 18 CHF
ABH FINANCIAL 5.5% 17 EUR
ALFA MTN ISS 8% 15
ALFA BANK 7.875% 17
ALFA BANK 6.3% 17 (callable)
ALFA BANK 7.5% 19
ALFA BANK 7.75% 21
BANK OF MOSCOW 6.699% 15
BANK OF MOSCOW 5.967% 15 (callable)
BANK OF MOSCOW 6.02% 17 (callable)
BANK ST PETERSBU 7.63% 17 (callable)
BANK ST PETERSBU 11% 18
BANK ST PETERSBU 10.75% 19
CREDIT BANK OF M 7.7% 18
CREDIT BANK OF M 8.7% 18
CEB CAPITAL SA 8.5% 19
EURASIAN DEV 4.767% 22
GAZPROMBANK 6.25% 14
GAZPROMBANK 6.5% 15
GAZPROMBANK 7.35% 16
GAZPROMBANK 5.625% 17
GAZPROMBANK 3.984% 18 EUR
GAZPROMBANK 7.496% 23 (callable)
GAZPROMBANK 7.875% perp (callable)
GPB EUROBOND 4% 16 CNY
HCFB LLC 9.375% 20 (callable)
HCFB LLC 10.5% 21 (callable)
INTL INDUST BANK 9% 11 EUR
IIB LUXEMBOURG 11% 13
MOSCOW BK R&D 7.93% 16 (callable)
NOMOS BANK 8.75% 15
NOMOS BANK 7.25% 18
BANK OTKRITIE 10% 19
PROBUSINESSBANK 11.75% 16
PROMSVYAZBK 12.75% 15
PROMSVYAZBK 11.25% 16
PROMSVYAZBK 8.5% 17
PROMSVYAZBK 10.2% 19
PROMSVYAZBK 10.5% 21
PROMSVYAZBK 10.5% 21
RENAISSANCE SEC 11% 16 (putable)
CB RENCAP 7.75% 16
CB RENCAP 13.5% 18
CB RENCAP 13.5% 19
OJSC RUSS AGRIC 6.299% 17
29-Oct-14
Ticker
AKBARS
AKBARS
ABHFIN
ABHFIN
ALFARU
ALFARU
ALFARU
ALFARU
ALFARU
BKMOSC
BKMOSC
BKMOSC
STPETE
STPETE
STPETE
CRBKMO
CRBKMO
FCFIN
EURDEV
GPBRU
GPBRU
GPBRU
GPBRU
GPBRU
GPBRU
GPBRU
GPBRU
HCFBRU
HCFBRU
IIBRU
IIBRU
MBRDRU
NMOSRM
NMOSRM
NMOSRM
PROBUS
PROMBK
PROMBK
PROMBK
PROMBK
PROMBK
PROMBK
RENSEC
RCCF
RCCF
RCCF
RSHB
Coupon
Maturity
8.75%
8%
4%
5.5%
8%
7.875%
6.3%
7.5%
7.75%
6.699%
5.967%
6.02%
7.63%
11%
10.75%
7.7%
8.7%
8.5%
4.767%
6.25%
6.5%
7.35%
5.625%
3.984%
7.496%
7.875%
4%
9.375%
10.5%
9%
11%
7.93%
8.75%
7.25%
10%
11.75%
12.75%
11.25%
8.5%
10.2%
10.5%
10.5%
11%
7.75%
13.5%
13.5%
6.299%
11/19/2015
7/13/2022
1/16/2018
6/10/2017
3/18/2015
9/25/2017
2/22/2017
9/26/2019
4/28/2021
3/11/2015
11/25/2015
5/10/2017
7/25/2017
10/24/2018
4/22/2019
2/1/2018
11/13/2018
11/15/2019
9/20/2022
12/15/2014
9/23/2015
5/8/2016
5/17/2017
10/30/2018
12/28/2023
Perpetual
2/24/2016
4/24/2020
4/19/2021
7/6/2011
2/19/2013
3/10/2016
10/21/2015
4/25/2018
4/26/2019
5/10/2016
5/27/2015
7/8/2016
4/25/2017
11/6/2019
3/17/2021
7/30/2021
4/21/2016
5/31/2016
6/21/2018
5/22/2019
5/15/2017
Rating
( M / S&P / F )
B1 / / BB/ /B
/ BB- / BB+
/ BB- / BB+
Ba1 / BB+ / BBBBa1 / BB+ / BBBBa3 / BB- / BB+
Ba3 / BB- / BB+
Ba1 / BB+ / BBBBa1 / / WD
Ba3 / / WD
Ba3 / / WD
B1 / / WD
B1 / / WD
/ / B+
B1 / BB- / BB
/ / BBB1 / / B+
A3 / BBB / WD
Ba1 / BBB- / BBBBa1 / BBB- / BBBBa1 / / BBBBa1 / BBB- / BBBBa1 / BBB- / BBB/ / BBNR
Ba1 / BBB- / BBBB2 / / B+
/ / B+
/ / WD
/ / WD
B2 / /
B1 / / WD
Ba3 / / WD
B1 / / WD
/ /B
B1 / / B+
B1 / / B+
Ba3 / / BBB1 / / B+
NR
/ / B+
B3 / B / B
B3 / B / WD
Caa1 / / WD
NR
Ba1 / / BBB-
Price
Bid
Px Bid
100.750
83.500
104.750
99.750
101.000
104.000
98.000
98.750
100.750
100.625
99.750
95.250
90.000
95.500
98.500
97.750
85.000
101.000
97.125
100.250
101.750
103.375
99.750
94.500
94.500
94.250
95.125
83.000
85.000
3.000
0.500
75.000
100.500
94.375
98.000
82.000
102.500
102.750
101.000
91.750
94.625
94.250
97.500
86.500
70.250
65.000
100.125
Yield
Ask
Px Ask
102.500
84.625
105.375
100.750
101.750
105.000
99.250
99.750
101.750
101.125
100.750
97.250
94.000
98.000
103.000
98.500
90.000
104.000
97.750
100.750
102.375
104.750
101.000
95.625
96.000
96.000
96.125
88.000
88.000
3.000
3.500
80.000
101.500
95.500
100.000
88.000
103.500
104.000
102.500
94.250
96.250
95.250
99.500
88.500
76.000
78.000
101.000
Bid %
Ask %
7.984%
11.25%
2.441%
5.590%
5.289%
6.340%
7.249%
7.808%
7.601%
4.768%
6.206%
8.135%
12.01%
12.46%
11.18%
8.499%
13.65%
8.251%
5.223%
4.142%
4.481%
4.962%
5.730%
5.556%
8.391%
8.963%
8.004%
13.80%
14.10%
6.253%
11.007%
2.244%
5.171%
3.345%
5.970%
6.650%
7.559%
7.406%
3.383%
5.232%
7.229%
10.188%
11.640%
9.903%
8.228%
11.888%
7.530%
5.117%
0.242%
3.777%
4.045%
5.199%
5.225%
8.148%
8.795%
7.082%
12.355%
13.322%
31.93%
8.201%
9.179%
10.57%
26.86%
8.181%
9.430%
8.047%
12.45%
11.71%
11.74%
12.90%
17.89%
26.74%
27.37%
6.237%
26.303%
7.126%
8.793%
9.999%
21.351%
6.431%
8.636%
7.380%
11.748%
11.336%
11.524%
11.372%
16.263%
23.661%
21.254%
5.873%
Spread
Bid
SPREAD
Ask
785
920
243
562
526
553
669
630
573
474
607
748
1128
1128
982
756
1244
671
314
413
439
463
507
551
786
885
464
1490
1224
613
895
228
520
332
516
609
605
554
338
510
658
945
1045
854
729
1068
599
304
23
369
373
454
518
741
823
374
1282
1146
3170
809
816
920
2659
812
910
741
1092
987
982
1265
1760
2567
2598
558
2608
702
778
863
2108
638
831
675
1021
949
960
1112
1597
2259
1986
522
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Russia Banks (cont)
Indicative Prices -- Russian Banks
Name
29-Oct-14
Ticker
Coupon
Maturity
OJSC RUSS AGRIC 5.298% 17
OJSC RUSS AGRIC 7.75% 18
OJSC RUSS AGRIC 6% 21 (callable)
RSHB
RSHB
RSHB
5.298%
7.75%
6%
12/27/2017
5/29/2018
6/3/2021
OJSC RUSS AGRIC 8.5% 23
AK BARS BANK 8.75% 15
RSHB
AKBARS
8.5%
8.75%
10/16/2023
11/19/2015
RUSSIAN STAND BK 7.561% 16 (callable)
RUSSIAN STAND BK 9.25% 17 (putable)
RUSSIAN STAND BK 10.75% 18
RUSSIAN STAND BK 11.5% 24 (callable)
SBERBANK 5.499% 15
SBERBANK 5.4% 17
SBERBANK 4.95% 17
SBERBANK 5.717% 21
SBERBANK 3.3524% 19 EUR
SBERBANK 6.125% 22
SBERBANK 5.125% 22
SBERBANK 5.25% 23
SBERBANK 5.5% 24 (callable)
VTB BANK 9.5% perp (callable)
TKS BANK 10.75% 15
TINKOFF CREDIT 14% 18
ORIENT EXPR BNK 12% 19
VEB (VEB-LEAS) 5.125% 16
VEB FINANCE PLC 3.75% 16 CHF
TATFONDBANK 11% 17 (putable)
TRANSCAPITALBANK 7.74% 17 (callable)
VEB FINANCE PLC 5.375% 17
VEB FINANCE PLC 5.45% 17
VEB FINANCE PLC 4.224% 18
VEB FINANCE PLC 6.902% 20
VEB FINANCE PLC 6.025% 22
VEB FINANCE PLC 5.942% 23
VEB FINANCE PLC 6.8% 25
VTB BANK 6.465% 15
IND & CON BANK 5.01% 15 (callable)
VTB BANK 6% 17
VTB BANK 6.875% 18 (putable)
VTB BANK 6.315% 18
VTB BANK 6.551% 20
VTB BANK 6.95% 22
VTB BANK 6.25% 35 (putable)
VNESHPROMBANK 9% 16
URAL BK REC&DEV 12% 18
RUSB
RUSB
RUSB
RUSB
SBERRU
SBERRU
SBERRU
SBERRU
SBERRU
SBERRU
SBERRU
SBERRU
SBERRU
VTB
AKBHC
AKBHC
VOSEXP
VEBBNK
VEBBNK
TATFON
TRACAP
VEBBNK
VEBBNK
VEBBNK
VEBBNK
VEBBNK
VEBBNK
VEBBNK
VTB
VTB
VTB
VTB
VTB
VTB
VTB
VTB
FEIBNK
UBRIR
7.561%
9.25%
10.75%
11.5%
5.499%
5.4%
4.95%
5.717%
3.3524%
6.125%
5.125%
5.25%
5.5%
9.5%
10.75%
14%
12%
5.125%
3.75%
11%
7.74%
5.375%
5.45%
4.224%
6.902%
6.025%
5.942%
6.8%
6.465%
5.01%
6%
6.875%
6.315%
6.551%
6.95%
6.25%
9%
12%
12/1/2016
7/11/2017
4/10/2018
1/17/2024
7/7/2015
3/24/2017
2/7/2017
6/16/2021
11/15/2019
2/7/2022
10/29/2022
5/23/2023
2/26/2024
Perpetual
9/18/2015
6/6/2018
5/29/2019
5/27/2016
2/17/2016
4/28/2017
7/18/2017
2/13/2017
11/22/2017
11/21/2018
7/9/2020
7/5/2022
11/21/2023
11/22/2025
3/4/2015
9/29/2015
4/12/2017
5/29/2018
2/22/2018
10/13/2020
10/17/2022
6/30/2035
11/14/2016
12/27/2018
Rating
( M / S&P / F )
Ba1 / / BBBBa1 / / BBBB1 / / BB+
Price
Bid
Px Bid
97.250
103.750
92.000
Yield
Ask
Px Ask
Bid %
Ask %
98.000
104.500
93.500
6.279%
6.573%
8.562%
5.995%
6.304%
8.250%
Spread
Bid
SPREAD
Ask
538
553
1134
510
526
1024
NR
B1 / / BB-
94.500
100.750
96.000
102.500
9.421%
7.984%
9.163%
6.253%
722
785
696
613
B3 / B- /
B2 / B+ / B
B3 / B- / BCaa1 / / BBaa2 / / BBB
Baa2 / / BBB
Baa2 / / BBB
Baa2 / / BBB
Baa2 / / BBB
Baa2 / / BBB
Ba1 / / BBB/ / BBB/ / BBBNR
B2 / / B+
B3 / / B
NR
/ BBB- / BBB
/ BBB- / BBB
B2 / B /
B2 / /
/ BBB- / BBB
/ BBB- / BBB
/ BBB- / BBB
/ BBB- / BBB
/ BBB- / BBB
/ BBB- / BBB
/ BBB- / BBB
Baa3 / BBB- / WD
Ba2 / / WD
Baa3 / / WD
Baa3 / BBB- / WD
Baa3 / BBB- / WD
Baa3 / BBB- / WD
Ba2 / BB+ / WD
Baa3 / BBB- / WD
B2 / B+ /
NR
80.000
96.000
80.000
70.000
101.375
101.000
100.125
97.375
93.625
99.250
89.250
87.500
89.250
91.375
99.750
98.000
90.000
99.875
96.125
99.000
80.000
100.250
99.875
92.500
101.750
96.500
94.750
99.000
100.500
98.625
100.000
102.000
100.375
100.000
95.375
101.000
91.500
80.000
90.000
98.000
85.500
83.000
101.750
101.625
100.750
98.875
94.625
100.750
91.250
88.500
90.500
92.625
101.500
102.000
97.000
100.750
96.750
101.500
92.000
101.125
100.750
94.500
103.125
98.000
95.500
100.000
101.000
100.000
100.625
102.875
101.375
101.500
96.625
101.625
93.875
95.000
19.69%
10.99%
18.90%
18.28%
3.431%
4.943%
4.915%
6.204%
4.795%
6.252%
6.896%
7.232%
7.120%
10.81%
10.96%
14.72%
15.09%
5.168%
6.980%
11.47%
17.26%
5.230%
5.474%
6.348%
6.526%
6.611%
6.724%
6.930%
4.776%
6.578%
5.998%
6.240%
6.184%
6.550%
7.738%
6.162%
13.92%
19.17%
13.190%
10.104%
16.420%
14.880%
2.828%
4.648%
4.617%
5.923%
4.576%
5.994%
6.548%
7.062%
6.923%
10.664%
8.921%
13.270%
12.880%
4.607%
6.399%
10.302%
11.238%
4.823%
5.162%
5.762%
6.239%
6.356%
6.609%
6.799%
3.656%
5.005%
5.721%
5.969%
5.849%
6.245%
7.520%
6.110%
12.490%
13.600%
1923
1538
1790
2168
336
435
437
430
462
424
480
508
721
904
1087
1366
1370
487
703
1198
1654
468
461
513
484
456
451
458
475
648
538
519
523
480
565
345
1348
1792
1273
1221
1542
1606
276
405
407
402
440
399
446
491
684
879
883
1222
1148
432
657
967
1051
427
430
455
455
430
440
445
363
491
511
492
489
450
543
339
1204
1235
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Russia Corporates
Indicative Prices -- Russian Corporates
Name
JSC SEVERSTAL 6.25% 16
SEVERSTAL OAO 6.7% 17
SEVERSTAL OAO 4.45% 18
SEVERSTAL OAO 5.9% 22
LUKOIL INTL FIN 6.375% 14
LUKOIL INTL FIN 6.356% 17
LUKOIL INTL FIN 7.25% 19
LUKOIL INTL FIN 6.125% 20
LUKOIL INTL FIN 6.656% 22
LENSPETSSMU CJSC 9.75% 15 (sinkable)
ALLIANCE OIL CO 9.875% 15
ALLIANCE OIL CO 7% 20
ALROSA FINANCE 8.875% 14
ALROSA FINANCE 7.75% 20
BORETS FIN 7.625% 18
EVRAZ GROUP SA 8.25% 15
EVRAZ GROUP SA 7.4% 17
EVRAZ GROUP SA 9.5% 18
EVRAZ GROUP SA 6.75% 18
EVRAZ GROUP SA 6.5% 20
EUROCHEM M & C C 5.125% 17
EDC FINANCE LTD 4.875% 20
FAR EAST CPL LTD 8% 18 (callable)
FAR EAST CPL LTD 8.75% 20 (callable)
GAZPROM 5.364% 14 EUR
GAZPROM 8.125% 15 EUR
GAZPROM 5.875% 15 EUR
GAZPROM 5.092% 15
GAZPROM 6.212% 16
GAZPROM 5.136% 17 EUR
GAZPROM 5.44% 17 EUR
GAZPROM 8.146% 18
GAZPROM 6.605% 18 EUR
GAZPROM 9.25% 19 (putable)
GAZPROM 3.6% 21 EUR
GAZPROM 6.51% 22
GAZPROM 8.625% 34 (putable)
GAZPROM 7.288% 37
GAZPROM NEFT 4.375% 22
GAZPROM NEFT 2.933% 18 EUR
Ticker
CHMFRU
CHMFRU
CHMFRU
CHMFRU
LUKOIL
LUKOIL
LUKOIL
LUKOIL
LUKOIL
LENSP
VOSTOK
VOSTOK
ALRSRU
ALRSRU
BORFIN
EVRAZ
EVRAZ
EVRAZ
EVRAZ
EVRAZ
EUCHEM
EDCLLI
FESHRU
FESHRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
GAZPRU
SIBNEF
SIBNEF
Coupon
Maturity
6.25%
6.7%
4.45%
5.9%
6.375%
6.356%
7.25%
6.125%
6.656%
9.75%
9.875%
7%
8.875%
7.75%
7.625%
8.25%
7.4%
9.5%
6.75%
6.5%
5.125%
4.875%
8%
8.75%
5.364%
8.125%
5.875%
5.092%
6.212%
5.136%
5.44%
8.146%
6.605%
9.25%
3.6%
6.51%
8.625%
7.288%
4.375%
2.933%
7/26/2016
10/25/2017
3/19/2018
10/17/2022
11/5/2014
6/7/2017
11/5/2019
11/9/2020
6/7/2022
11/9/2015
3/11/2015
5/4/2020
11/17/2014
11/3/2020
9/26/2018
11/10/2015
4/24/2017
4/24/2018
4/27/2018
4/22/2020
12/12/2017
4/17/2020
5/2/2018
5/2/2020
10/31/2014
2/4/2015
6/1/2015
11/29/2015
11/22/2016
3/22/2017
11/2/2017
4/11/2018
2/13/2018
4/23/2019
2/26/2021
3/7/2022
4/28/2034
8/16/2037
9/19/2022
4/26/2018
Rating
( M / S&P / F )
Ba1 / BB+ / BB+
Ba1 / BB+ / BB+
/ BB+ / BB+
Ba1 / BB+ / BB+
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
NR
/ / WD
/ / WD
Ba3 / BB- / BB
Ba3 / BB- / BB
B1 / BB /
B1 / B+ / BBB1 / B+ / BBB1 / B+ / BBB1 / B+ / BB/ B+ / BB/ BB / BB
/ BB+ / BB
/B/B
/B/B
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa1 / BBB- / BBB
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Price
Bid
102.750
103.250
96.000
94.500
100.500
104.000
106.250
101.375
103.000
100.000
98.000
79.500
100.000
103.750
96.750
101.000
98.750
102.750
93.750
89.000
97.500
90.500
53.000
53.000
100.000
101.375
101.500
101.125
103.750
102.000
103.250
109.000
106.250
114.750
95.250
102.375
116.625
105.750
87.000
93.750
Yield
Ask
103.500
103.750
96.750
95.500
101.000
105.000
107.250
102.375
104.000
105.000
102.750
82.000
101.500
104.750
98.500
102.000
99.750
103.750
94.750
89.625
98.500
91.750
56.000
58.000
100.250
101.875
102.000
103.125
105.750
103.250
104.250
110.000
107.250
115.500
96.125
103.375
117.125
106.750
89.000
95.250
Bid %
4.581%
5.504%
5.765%
6.805%
-28.5%
4.702%
5.795%
5.850%
6.154%
9.743%
15.47%
12.21%
8.532%
6.975%
8.629%
7.219%
7.963%
8.569%
8.870%
9.093%
6.014%
6.996%
30.86%
24.87%
5.091%
2.698%
3.179%
4.014%
4.289%
4.226%
4.264%
5.255%
4.507%
5.491%
4.471%
6.102%
7.043%
6.787%
6.508%
4.922%
Ask %
4.138%
5.325%
5.514%
6.636%
-63.041%
4.303%
5.572%
5.654%
5.992%
-0.956%
2.227%
11.499%
-21.693%
6.774%
8.065%
6.208%
7.511%
8.239%
8.519%
8.936%
5.654%
6.703%
28.729%
22.397%
-81.332%
0.923%
2.344%
2.149%
3.302%
3.680%
3.913%
4.953%
4.189%
5.316%
4.307%
5.935%
7.001%
6.705%
6.157%
4.429%
29-Oct-14
Spread
Bid
Ask
424
380
466
449
478
454
472
455
-2861
-6305
402
362
426
404
408
389
411
395
974
-107
1544
220
1057
985
852
-2170
521
501
747
690
710
609
733
688
755
723
785
750
745
729
513
477
536
506
2984
2771
2323
2075
511
-8130
271
95
319
237
387
201
383
285
426
372
428
393
425
395
450
419
413
395
414
398
409
392
437
433
399
391
443
408
491
442
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Russia Corporates (cont)
Indicative Prices -- Russian Corporates
Name
DME AIRPORT LTD 6% 18
GUNVOR GROUP 5.875% 18
KAZANORGSINTEZ 10% 15
KOKS OAO 7.75% 16
METALLOINVEST FI 6.5% 16
METALLOINVEST FI 5.625% 20
SISTEMA 6.95% 19
MOBILE TELE 8.625% 20
MOBILE TELE 5% 23
NOVATEK OAO 5.326% 16
NORD GOLD NV 6.375% 18
MMC NOR VIA MMC 4.375% 18
NOVATEK OAO 6.604% 21
NOVATEK OAO 4.422% 22
MMC NOR VIA MMC 4.375% 18
MMC NOR VIA MMC 5.55% 20
OJSC NOVOLIPETSK 4.45% 18
OJSC NOVOLIPETSK 4.95% 19
OJSC RASPADSKAYA 7.75% 17
POLYUS GOLD INT 5.625% 20
PHOSAGRO 4.204% 18
RZD CAPITAL PLC 5.739% 17
RZD CAPITAL PLC 5.7% 22
RZD CAPITAL PLC 4.6% 23 EUR
RZD CAPITAL PLC 2.73% 21 CHF
SIBUR SEC LTD 3.914% 18
SINEK CAPITAL 7.7% 15 (putable)
SCF CAPITAL LTD 5.375% 17
BRUNSWICK RAIL 6.5% 17
TNK-BP FINANCE 6.25% 15
TNK-BP FINANCE 7.5% 16
TNK-BP FINANCE 6.625% 17
TNK-BP FINANCE 7.875% 18
TNK-BP FINANCE 7.25% 20
TRANSNEFT 8.7% 18
OAO TMK 7.75% 18
OAO TMK 6.75% 20
URALKALI OJSC 3.723% 18
VIMPELCOM 6.493% 16
VIMPELCOM 8.25% 16
VIMPELCOM HLDGS 6.2546% 17
VIMPELCOM 9.125% 18
VIMPELCOM HLDGS 5.2% 19
VIMPELCOM 7.748% 21
VIMPELCOM HLDGS 7.5043% 22
VIMPELCOM HLDGS 5.95% 23
Ticker
DMEAIR
GUNVOR
KZOSRU
KOKSRU
METINR
METINR
AFKSRU
MOBTEL
MOBTEL
NVTKRM
NORDLI
GMKNRM
NVTKRM
NVTKRM
GMKNRM
GMKNRM
NLMKRU
NLMKRU
RASPAD
PGILLN
PHORRU
RURAIL
RURAIL
RURAIL
RURAIL
SIBUR
SINEK
SCFRU
RBNRL
TMENRU
TMENRU
TMENRU
TMENRU
TMENRU
TNEFT
TRUBRU
TRUBRU
URKARM
VIP
VIP
VIP
VIP
VIP
VIP
VIP
VIP
Coupon
6%
5.875%
10%
7.75%
6.5%
5.625%
6.95%
8.625%
5%
5.326%
6.375%
4.375%
6.604%
4.422%
4.375%
5.55%
4.45%
4.95%
7.75%
5.625%
4.204%
5.739%
5.7%
4.6%
2.73%
3.914%
7.7%
5.375%
6.5%
6.25%
7.5%
6.625%
7.875%
7.25%
8.7%
7.75%
6.75%
3.723%
6.493%
8.25%
6.2546%
9.125%
5.2%
7.748%
7.5043%
5.95%
Maturity
11/26/2018
5/21/2018
3/19/2015
6/23/2016
7/21/2016
4/17/2020
5/17/2019
6/22/2020
5/30/2023
2/3/2016
5/7/2018
4/30/2018
2/3/2021
12/13/2022
4/30/2018
10/28/2020
2/19/2018
9/26/2019
4/27/2017
4/29/2020
2/13/2018
4/3/2017
4/5/2022
3/6/2023
2/26/2021
1/31/2018
8/3/2015
10/27/2017
11/1/2017
2/2/2015
7/18/2016
3/20/2017
3/13/2018
2/2/2020
8/7/2018
1/27/2018
4/3/2020
4/30/2018
2/2/2016
5/23/2016
3/1/2017
4/30/2018
2/13/2019
2/2/2021
3/1/2022
2/13/2023
Rating
( M / S&P / F )
/ BB+ / BB+
NR
/ / CCC
B3 / CCC+ /
Ba2 / / BB
Ba2 / BB / BB
/ BB+ / BBBaa3 / BBB- / BB+
Baa3 / BBB- / BB+
Baa3 / BBB- / BBBBa3 / / BBBaa2 / BBB- / BBBBaa3 / BBB- / BBBBaa3 / BBB- / BBBBaa2 / BBB- / BBBBaa2 / BBB- / BBBBaa3 / BB+ / BBBBaa3 / BB+ / BBBB2 / / B+
/ BB+ / BBBBaa3 / / BB+
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Baa2 / BBB- / BBB
Ba1 / / BB+
Baa3 / / BBB
Ba3 / / BBB1 / B+ /
Baa2 / BBB- / WD
Baa2 / BBB- / WD
Baa2 / BBB- / WD
Baa2 / BBB- / WD
Baa2 / BBB- / WD
Baa2 / BBB- /
B1 / B+ /
B1 / B+ /
Baa3 / / BBBBa3 / BB /
Ba3 / BB /
Ba3 / BB /
Ba3 / BB /
Ba3 / BB /
Ba3 / BB /
Ba3 / BB /
Ba3 / BB /
Yield
Price
Bid
97.000
91.500
99.250
89.000
100.000
90.000
75.000
106.500
88.875
101.500
95.250
98.000
101.000
87.875
98.625
99.125
96.125
95.625
88.000
95.750
96.500
102.500
99.000
97.500
86.250
93.000
101.000
95.250
90.000
100.375
103.875
102.750
106.500
104.500
111.500
100.000
90.250
96.125
101.000
104.000
100.625
107.250
96.500
101.500
100.000
91.500
Ask
98.500
95.750
101.875
91.250
101.000
91.000
76.750
107.500
90.000
102.500
96.750
99.375
102.250
88.875
99.500
100.125
97.000
96.375
90.000
96.875
97.500
103.125
100.000
98.500
87.625
94.000
102.625
96.000
91.000
101.000
104.250
103.750
107.500
105.500
112.750
101.000
91.250
96.625
102.500
105.000
102.000
108.750
97.500
102.250
101.000
92.375
Bid %
6.854%
8.701%
11.89%
15.55%
6.492%
7.913%
14.67%
7.199%
6.726%
4.085%
7.947%
5.005%
6.404%
6.350%
4.814%
5.718%
5.763%
5.992%
13.58%
6.549%
5.373%
4.635%
5.867%
4.969%
5.348%
6.328%
6.308%
7.166%
10.46%
4.693%
5.106%
5.379%
5.723%
6.229%
5.290%
7.743%
9.062%
4.942%
5.647%
5.540%
5.959%
6.764%
6.138%
7.440%
7.501%
7.334%
Ask %
6.423%
7.250%
4.993%
13.853%
5.875%
7.672%
14.036%
6.991%
6.550%
3.277%
7.441%
4.570%
6.163%
6.177%
4.532%
5.537%
5.445%
5.797%
12.546%
6.320%
5.045%
4.365%
5.699%
4.819%
5.057%
5.970%
4.135%
6.877%
10.046%
2.279%
4.882%
4.938%
5.407%
6.011%
4.947%
7.391%
8.811%
4.782%
4.417%
4.887%
5.329%
6.300%
5.866%
7.290%
7.323%
7.185%
29-Oct-14
Spread
Bid
Ask
563
520
766
621
1186
496
1524
1354
615
554
627
603
1329
1265
552
531
457
439
389
309
692
642
398
355
459
435
425
407
379
351
395
378
481
449
448
429
1295
1191
490
467
443
409
403
376
384
368
432
417
512
486
539
504
623
406
632
604
962
920
468
227
477
455
479
435
475
443
464
442
418
383
681
646
743
718
392
376
545
423
525
460
539
476
574
528
484
457
562
547
549
531
521
506
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Kazakhstani Banks
Indicative Prices -- Kazakhstan Banks
29-Oct-14
Name
ALLIANCE BANK 10.5% 17 (sinkable)
ALLIANCE BANK 4.7% 20 (sinkable)
ATF BANK 9% 16
ATF CAPITAL BV 10% perp (callable)
BTA BANK JSC 3.14% 21 EUR (sinkable)
BTA BANK JSC 3.7% 21 (sinkable)
BTA BANK JSC 5.5% 22
BANK CENTERCREDI 9.125% perp (callable)
KASPI BANK JSC 9.875% 16
KAZAKH DEVELOPME 6.5% 20
KAZAKH DEVELOPME 6% 26
KAZAKH DEVELOPME 5.5% 15
HALYK SAVINGS BK 7.25% 17
HALYK SAVINGS BK 7.25% 21
KAZKOMMERTSBANK 8% 15
KAZKOMMERTSBANK 7.5% 16
KAZKOMMERTSBANK 6.765% 16 (callable)
KAZKOMMERTSBANK 6.875% 17 EUR
KAZKOMMERTSBANK 5.95% 17 (callable)
KAZKOMMERTSBANK 9.2% perp (callable)
KAZKOMMERTSBANK 8.5% 18
Ticker
ALLIBK
ALLIBK
ATFBP
ATFBP
BTASKZ
BTASKZ
BTASKZ
CCBNKZ
CSBNKZ
DBKAZ
DBKAZ
DBKAZ
HSBKKZ
HSBKKZ
KKB
KKB
KKB
KKB
KKB
KKB
KKB
Coupon
10.5%
4.7%
9%
10%
3.14%
3.7%
5.5%
9.125%
9.875%
6.5%
6%
5.5%
7.25%
7.25%
8%
7.5%
6.765%
6.875%
5.95%
9.2%
8.5%
Maturity
3/25/2017
3/25/2020
5/11/2016
Perpetual
7/1/2021
7/1/2021
12/21/2022
Perpetual
10/28/2016
6/3/2020
3/23/2026
12/20/2015
5/3/2017
1/28/2021
11/3/2015
11/29/2016
7/27/2016
2/13/2017
6/13/2017
Perpetual
5/11/2018
Rating
( M / S&P / F )
Cu / D / C
Cu / D / C
Caa2 / / BCa / / CC
/ / WD
/ / WD
/ / BCaa2 / / CCC
B1 / BB- /
Baa3 / BBB+ / BBB
Baa3 / BBB+ / BBB
Baa3 / BBB+ / BBB
Ba3 / BB+ / BB
Ba3 / BB+ / BB
Caa1u / B / B
Caa1u / B / B
Caa2u / CCC / BCaa1u / B / B
Caa2u / CCC / BCaa3u / CCC- / CCC
Caa1u / B / B
Price
Yield
Bid
Ask
53.000
40.000
100.000
68.000
15.250
15.250
74.000
80.000
104.375
107.000
102.000
103.000
106.000
107.000
100.000
99.000
92.500
100.250
85.000
78.000
96.250
63.000
60.000
101.500
73.000
19.250
19.250
78.000
88.000
105.750
110.750
105.000
105.000
108.250
109.500
101.000
101.500
95.000
102.500
90.750
82.000
101.000
Spread
Ask
Bid %
Ask %
Bid
45.20%
-54.4%
8.995%
12.08%
35.183%
-59.844%
7.936%
11.227%
4461
-5603
872
3237
3459
-6147
766
2796
10.29%
8.416%
7.475%
5.046%
5.757%
2.801%
4.686%
5.891%
7.998%
8.026%
11.63%
6.731%
12.86%
8.759%
9.779%
9.429%
7.586%
6.717%
4.315%
5.406%
1.070%
3.772%
5.433%
6.955%
6.711%
9.949%
5.661%
10.048%
8.305%
8.167%
818
2773
705
338
340
264
404
408
788
756
1129
677
1218
3673
875
732
1948
629
265
305
92
313
362
684
625
961
570
936
3088
714
Market Information and Select BCP Valuation Comments – Kazakhstani Corporates
Indicative Prices -- Kazakhstan Corporates
Name
INTERGAS FIN BV 6.375% 17
KAZATOMPROM 6.25% 15
KAZMUNAYGAS NAT 11.75% 15
KAZMUNAYGAS NAT 9.125% 18
KAZMUNAYGAS NAT 7% 20
KAZMUNAYGAS NAT 4.4% 23
ZHAIKMUNAI LLP 7.125% 19 (callable)
KAZAKHSTAN TEMIR 7% 16
KAZAKHSTAN TEMIR 6.375% 20
KAZAGRO NATL MGM 4.625% 23
KAZAGRO NATL MGM 4.625% 23
TRISTAN OIL LTD 10.5% 12 (callable)
29-Oct-14
Ticker
KZTGKZ
KZAPKZ
KZOKZ
KZOKZ
KZOKZ
KZOKZ
ZHAIK
KTZKZ
KTZKZ
KAZNMH
KAZNMH
TRISTN
Coupon
6.375%
6.25%
11.75%
9.125%
7%
4.4%
7.125%
7%
6.375%
4.625%
4.625%
10.5%
Maturity
5/14/2017
5/20/2015
1/23/2015
7/2/2018
5/5/2020
4/30/2023
11/13/2019
5/11/2016
10/6/2020
5/24/2023
5/24/2023
1/1/2012
Rating
( M / S&P / F )
Baa3 / BB+ / BB+
Baa3 / / BBBBaa3 / BBB- / BBB
Baa3 / BBB- / BBB
Baa3 / BBB- / BBB
Baa3 / BBB- / BBB
B2 / B+ /
Baa3 / BBB- / BBB
Baa3 / BBB- / BBB
/ BBB+ / BBB
/ BBB+ / BBB
/ / WD
Yield
Price
Bid
Ask
107.000
101.500
102.000
117.625
112.375
97.500
103.000
106.250
107.000
96.000
96.000
35.000
109.500
102.250
102.500
119.000
113.375
98.750
106.000
107.500
110.750
98.000
98.000
45.000
Bid %
Ask %
3.461%
3.495%
2.924%
3.921%
4.444%
4.753%
6.416%
2.786%
4.996%
5.209%
5.209%
2.478%
2.151%
0.858%
3.557%
4.253%
4.579%
5.445%
1.986%
4.302%
4.913%
4.913%
Spread
Bid
Ask
280
344
291
284
279
260
506
251
325
305
305
182
210
85
248
260
243
424
171
256
276
276
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Ukrainian Banks
Indicative Prices -- Ukraine Banks
Name
FINANCE & CREDIT 9.25% 19
CJSC FIRST UKRAI 11% 14
BANK NADRA 6.25% 18 (sinkable)
PRIVATBANK 9.375% 15
PRIVATBANK 5.799% 16 (callable)
PRIVATBANK 10.875% 18
OSCHADBANK 8.25% 16
OSCHADBANK 8.875% 18
UKREXIMBANK 8.375% 15
EX-IM BK OF UKRA 5.79275% 16 (callable)
UKREXIMBANK 8.75% 18
VAB BANK 9% 19 (sinkable)
29-Oct-14
Ticker
FICBUA
PUMBUZ
NADRA
PRBANK
PRBANK
PRBANK
OSCHAD
OSCHAD
EXIMUK
EXIMUK
EXIMUK
VABANK
Coupon
9.25%
11%
6.25%
9.375%
5.799%
10.875%
8.25%
8.875%
8.375%
5.79275%
8.75%
9%
Maturity
1/25/2019
12/31/2014
7/31/2018
9/23/2015
2/9/2016
2/28/2018
3/10/2016
3/20/2018
4/27/2015
2/9/2016
1/22/2018
6/14/2019
Rating
( M / S&P / F )
NR
Caa3 / /
/ / WD
Caa3u / / CC
Cau / /
Caa3u / / CC
Caa3 / / CCC
Caa3 / / CCC
Caa3 / / CCC
Ca / / C
Caa3 / / CCC
/ / WD
Yield
Price
Bid
Ask
47.625
66.000
45.000
72.000
60.000
71.500
81.750
78.000
88.500
70.000
79.000
56.875
72.000
50.000
77.000
68.000
74.125
82.750
80.000
89.500
90.000
80.500
Bid %
Ask %
Bid
33.03%
321.2%
69.88%
52.17%
52.59%
23.69%
24.81%
17.78%
35.86%
37.41%
17.52%
26.879%
245.486%
59.148%
42.757%
40.204%
22.262%
23.776%
16.847%
33.193%
14.652%
16.803%
3176
45032
6878
5208
5240
2274
2459
1680
3581
3722
1660
Spread
Ask
2560
32080
5804
4267
4001
2130
2356
1587
3315
1446
1588
Market Information and Select BCP Valuation Comments – Ukrainian Corporates
Indicative Prices -- Ukraine Corporates
Name
CITY OF KYIV 8% 15
CITY OF KYIV 9.375% 16
NTRP 10.25% 17
AGROTON PUBLIC 6% 19
AVANGARDCO INVES 10% 15
UKRLANDFARMING 10.875% 18
DTEK FINANCE BV 9.5% 15
DTEK FINANCE 7.875% 18
METINVEST 10.25% 15
METINVEST 8.75% 18
FERREXPO FINANCE 7.875% 16
MHP SA 10.25% 15
MHP SA 8.25% 20
MRIYA AGRO HLDG 10.95% 16
MRIYA AGRO HLDG 9.45% 18
UZ RAIL SHORTLIN 9.5% 18
29-Oct-14
Ticker
CITKIE
CITKIE
INPIP
AGTPW
AVINPU
UKRLAN
DTEKUA
DTEKUA
METINV
METINV
FXPOLN
MHPSA
MHPSA
MRIYA
MRIYA
RAILUA
Coupon
8%
9.375%
10.25%
6%
10%
10.875%
9.5%
7.875%
10.25%
8.75%
7.875%
10.25%
8.25%
10.95%
9.45%
9.5%
Maturity
11/6/2015
7/11/2016
8/2/2017
7/14/2019
10/29/2015
3/26/2018
4/28/2015
4/4/2018
5/20/2015
2/14/2018
4/7/2016
4/29/2015
4/2/2020
3/30/2016
4/19/2018
5/21/2018
Price
Rating
( M / S&P / F )
Caa3 / CCC / CC
Caa3 / CCC / CC
/ /C
/ / WD
/ / CCC
/ CCC / CCC
Caa2 / / CCC
Caa2 / / CCC
Caa2 / / CCC
Caa2 / / CCC
Caa2 / CCC+ / CCC
Caa2 / / CCC
/ CCC / CCC
/ CC / C
/ CC / C
/ CCC / CCC
Bid
78.000
76.000
52.000
30.000
85.000
63.000
85.500
64.000
79.000
68.000
94.125
98.000
86.000
20.000
20.000
70.000
Yield
Ask
81.000
80.000
65.000
35.125
90.000
73.000
90.000
65.000
82.000
73.000
95.125
100.000
90.000
37.500
30.000
75.000
Bid %
Ask %
Bid
35.56%
28.04%
40.72%
42.28%
28.29%
28.53%
45.92%
23.84%
59.89%
23.15%
12.45%
14.61%
11.81%
195.1%
81.76%
22.10%
31.209%
24.416%
29.668%
36.762%
21.682%
22.652%
33.364%
23.258%
51.328%
20.393%
11.650%
10.238%
10.729%
107.472%
59.403%
19.570%
3544
2771
3997
4084
2818
2755
4587
2285
5984
2220
1221
1456
1019
19486
8076
2106
Spread
Ask
3109
2409
2892
3532
2157
2167
3331
2226
5128
1945
1140
1019
910
10723
5840
1853
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Turkey
Indicative Prices -- Turkey
Name
AKBANK 5.125% 15
AKBANK 3.875% 17
AKBANK 6.5% 18
AKBANK 5% 22
ASYA SUKUK CO 7.5% 23 (callable)
ANADOLU EFES 3.375% 22
ARCELIK 5% 23
BANKPOZITIF KRED 5% 18
TURK EXIMBANK 5.375% 16
TURK EXIMBANK 5.875% 19
FINANSBANK 5.5% 16
FINANSBANK 5.15% 17
IS BANKASI 5.1% 16
IS BANKASI 3.875% 17
IS BANKASI 3.75% 18
IS BANKASI 6% 22
TURKIYE GARANTI 2.73075% 16
TURKIYE GARANTI 4% 17
TURKIYE GARANTI 6.25% 21
TURKIYE GARANTI 5.25% 22
GLOBAL YATIRIM H 11% 17
TURKIYE VAKIFLAR 5.75% 17
TURKIYE VAKIFLAR 3.75% 18
TURKIYE VAKIFLAR 6% 22
TUPRAS 4.125% 18
YASAR HOLDINGS 9.625% 15 (callable)
HALKBANK 4.875% 17
HALKBANK 3.875% 20
YAPI VE KREDI BA 5.1875% 15
YAPI VE KREDI BA 6.75% 17
YAPI VE KREDI BA 4% 20
YAPI VE KREDI BA 5.5% 22
YASAR HOLDINGS 9.625% 15 (callable)
YUKSEL INSAAT 9.5% 15 (callable)
29-Oct-14
Ticker
Coupon
Maturity
AKBNK
5.125% 7/22/2015
AKBNK
3.875% 10/24/2017
AKBNK
6.5%
3/9/2018
AKBNK
5% 10/24/2022
ASYAKA
7.5% 3/28/2023
AEFES
3.375% 11/1/2022
ACKAF
5%
4/3/2023
BNKPOZ
5%
2/7/2018
EXCRTU
5.375% 11/4/2016
EXCRTU
5.875% 4/24/2019
FINBN
5.5% 5/11/2016
FINBN
5.15% 11/1/2017
ISCTR
5.1%
2/1/2016
ISCTR
3.875% 11/7/2017
ISCTR
3.75% 10/10/2018
ISCTR
6% 10/24/2022
GARAN 2.73075% 4/20/2016
GARAN
4% 9/13/2017
GARAN
6.25% 4/20/2021
GARAN
5.25% 9/13/2022
GLYHO
11% 6/30/2017
VAKBN
5.75% 4/24/2017
VAKBN
3.75% 4/15/2018
VAKBN
6% 11/1/2022
TUPRST
4.125%
5/2/2018
YASAR
9.625% 10/7/2015
HALKBK
4.875% 7/19/2017
HALKBK
3.875%
2/5/2020
YKBNK
5.1875% 10/13/2015
YKBNK
6.75%
2/8/2017
YKBNK
4% 1/22/2020
YKBNK
5.5% 12/6/2022
YASAR
9.625% 10/7/2015
YUKSEL
9.5% 11/10/2015
Price
Rating
( M / S&P / F )
Baa3 / / BBBBaa3 / / BBBBaa3 / / BBBBaa3 / / BBBCa / /
Baa3 / BBB- /
/ BB+ / BB+
/ / BBBBaa3 / BB+ /
Baa3 / BB+ /
Ba2 / / BBBBa2 / / BBBBaa3 / / BBBBaa3 / / BBBBaa3 / / BBBBa2 / / BB+
Baa3 / / BBBBaa3 / / BBBBaa3 / / BBBBaa3 / / BBBNR
Baa3 / / BBBBaa3 / / BBBBa2 / / BB+
Ba1 / / BBBB2 / / B
Baa3 / / BBBBaa3 / / BBB/ BB+ / BBB
Baa3 / / BBB
Baa3 / / BBB
Ba2 / / BBBB2 / / B
/ / WD
Yield
Bid
Ask
101.875
100.500
108.000
99.000
50.000
89.000
95.500
97.250
105.000
106.250
103.000
102.250
103.000
100.500
98.125
99.000
99.000
101.000
107.000
100.500
88.000
104.875
97.500
97.000
99.250
102.000
102.500
94.750
102.000
107.125
95.500
94.875
102.000
53.000
102.750
101.500
109.500
101.000
60.000
90.250
96.500
99.250
105.500
106.875
103.375
103.000
103.500
101.500
98.625
100.000
101.000
102.000
108.250
101.500
96.000
105.500
98.500
98.000
100.250
103.000
103.500
95.750
102.750
107.625
96.500
95.375
103.000
63.000
Spread
Bid %
Ask %
Bid
Ask
2.508%
3.695%
3.925%
5.154%
20.48%
5.063%
5.678%
5.934%
2.800%
4.326%
3.459%
4.324%
2.630%
3.698%
4.271%
6.160%
3.427%
3.627%
4.970%
5.170%
16.73%
3.677%
4.538%
6.486%
4.357%
7.364%
3.894%
5.021%
3.040%
3.459%
4.987%
6.316%
7.364%
87.73%
1.270%
3.341%
3.470%
4.847%
16.872%
4.852%
5.525%
5.250%
2.552%
4.177%
3.210%
4.078%
2.230%
3.348%
4.131%
6.000%
2.049%
3.261%
4.752%
5.016%
12.800%
3.421%
4.220%
6.322%
4.048%
1.646%
3.512%
4.797%
2.253%
3.239%
4.763%
6.235%
1.646%
63.859%
243
285
295
306
3197
297
354
499
236
296
318
348
243
284
309
407
120
250
250
276
2484
276
339
431
212
281
293
323
204
250
296
391
283
310
309
1603
304
353
439
334
727
316
343
294
291
340
421
727
8761
247
289
294
1209
279
322
423
303
164
278
320
216
270
318
413
164
6374
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Market Information and Select BCP Valuation Comments – Other Eastern Europe
Indicative Prices -- Other Eastern European
Name
BULGARIA STEEL 12% 13 EUR
ARMENIA 6% 20
REPUBLIC OF AZER 4.75% 24
AZERBAIJAN RAILW 8.25% 16 (callable)
AGROKOR 8.875% 20 (callable)
INTL BK OF AZERB 6.17% 17 (callable)
INTL BANK OF AZ 5.625% 19
STATE OIL CO AZE 4.75% 23
PETROL AD-SOFIA 8.375% 17 EUR
GEORGIA REP OF 6.875% 21
BANK OF GEORGIA 7.75% 17
GEORGIAN RAILWAY 9.875% 15
GEORGIAN OIL 6.875% 17
ZLOMREX INT FIN 8.5% 14 EUR (callable)
SAZKA 9% 21 EUR (sinkable)
NITROGENMUVEK ZR 7.875% 20 (callable)
MOL MAGYAR OLAJ 3.875% 15 EUR
MOL HUNGARIAN 5.875% 17 EUR
MOL GROUP FIN SA 6.25% 19
EESTI ENERGIA AS 4.25% 18 EUR
EESTI ENERGIA AS 4.5% 20 EUR
REPUBLIC OF BELA 8.75% 15
REPUBLIC OF BELA 8.95% 18
29-Oct-14
Ticker
BG
AZ
AZ
AZ
AZ
AZ
AZ
AZ
BG
GE
GE
GE
GE
PL
CZ
HU
HU
HU
HU
EE
EE
BY
BY
KREMBU
ARMEN
AZERBJ
AZRAIL
AGROK
IBAZAZ
IBAZAZ
SOIAZ
PETSOF
GEORG
GEBGG
GRAIL
GEOROG
ZLOM
SAZKA
NITROG
MOLHB
MOLHB
MOLHB
ESTONE
ESTONE
BELRUS
BELRUS
Coupon
12%
6%
4.75%
8.25%
8.875%
6.17%
5.625%
4.75%
8.375%
6.875%
7.75%
9.875%
6.875%
8.5%
9%
7.875%
3.875%
5.875%
6.25%
4.25%
4.5%
8.75%
8.95%
Maturity
5/4/2013
9/30/2020
3/18/2024
2/18/2016
2/1/2020
5/10/2017
6/11/2019
3/13/2023
1/26/2017
4/12/2021
7/5/2017
7/22/2015
5/16/2017
2/1/2014
7/12/2021
5/21/2020
10/5/2015
4/20/2017
9/26/2019
10/2/2018
11/18/2020
8/3/2015
1/26/2018
Rating
( M / S&P / F )
NR
Ba2 / / BBBaa3 / / BBBNR
B2 / B /
B1 / /
Ba3 / / BB
Ba1 / BB+ / BBB/ / WD
Ba3 / BB- / BBBa3 / BB- / BB/ BB- / BB/ B+ / BBNR
NR
/ BB- / BB/ BB / BBB/ BB / BBB/ BB / BBBBaa2 / BBB+ /
Baa2 / BBB+ /
B3 / B- /
B3 / B- /
Price
Bid
Ask
1.000
103.875
104.250
102.250
108.875
96.500
98.750
98.750
5.000
104.625
105.250
105.000
110.000
101.000
99.750
99.750
112.500
106.375
104.000
105.000
71.000
35.000
101.750
102.000
108.000
108.750
110.250
113.875
102.000
105.750
113.250
107.500
107.000
107.500
75.000
45.000
102.625
102.375
108.500
109.500
110.750
114.750
103.000
107.500
Yield
Bid %
Ask %
Spread
Bid
Ask
5.238%
4.196%
6.405%
6.819%
7.719%
5.936%
4.933%
5.084%
4.071%
-3.204%
5.634%
5.738%
5.686%
4.786%
350
195
620
547
707
453
280
334
182
-321
546
509
428
265
4.611%
5.168%
4.218%
4.763%
4.486%
4.734%
0.241%
3.756%
275
445
414
411
263
402
17
310
7.476%
1.700%
2.498%
4.247%
1.539%
2.043%
5.990%
6.930%
7.280%
1.236%
2.290%
4.089%
1.404%
1.892%
4.661%
6.346%
582
171
253
273
150
175
591
600
562
125
232
258
137
160
459
542
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
Sovereign and Bank Yields – Russia
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
Sovereign and Corporate Yields – Russia
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
Sovereign and Bank Yields – Kazakhstan
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
Sovereign and Corporate Yields – Kazakhstan
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
Sovereign and Bank Yields - Ukraine
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
Sovereign and Corporate Yields - Ukraine
October 29, 2014
James Harper, CFA, Director of Corporate Research
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Sovereign and Corporate and Bank Yields – Turkey
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
Corporate and Bank Yields – Other Eastern Europe
BCP Securities, LLC
289 Greenwich Ave.
Greenwich, CT 06830
October 29, 2014
James Harper, CFA, Director of Corporate Research
DISCLOSURE APPENDIX
REGULATION AC - ANALYST CERTIFICATION
I, James Harper, certify that all of the views expressed in this report accurately reflect my personal views about the
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related to the specific recommendations or views expressed by me in this report.
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Emerging Markets Bond Index series (“CEMBI”) Broad Diversified High-Yield Index over the next 3 – 6 months.
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Diversified High-Yield Index over the next 3 – 6 months.
“Market Underperform” – The bond’s total return is expected to be below the total return of the CEMBI Broad
Diversified High-Yield Index over the next 3 – 6 months.
“Not Rated” or no comment – Currently, the analyst does not have adequate conviction about the bond’s total return
relative to the CEMBI Broad Diversified High-Yield Index over the next 3 – 6 months.
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BCP Securities, LLC
289 Greenwich Ave.
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October 29, 2014
James Harper, CFA, Director of Corporate Research
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James Harper, CFA, Director of Corporate Research
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