Russian Financial Sector Update

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation 35 SECURITIES MARKET (4) Growing a deeper Russian bond market with strong potential Figure 30: Debt market volume breakdown by investor type Figure 29: Russian debt market volume (outstanding) keeps growing OFZ, RUB tn Corporate Bonds, RUB tn Local funds Local retail investors Local banks and brokers Local corporates Foreign investors 24 20 16 12 7.9 8 4 5.2 0 03.16 06.16 09.16 12.16 03.17 06.17 09.17 12.17 03.18 06.18 18% 9% 11.7 63% 18% 12% 17% 12% 55% 54% 7.6 4% 2% 8% 11% 2013 2016 7% 11% 2017 Figure 31: Bond market yields, key rate and RUONIA (%) Figure 32: EM 10Y bond yields on the background of credit ratings 30 25 Cbonds-CBI RU BBB/ruAA- YTM eff 8.5 Cbonds-GBI RU YTM eff RUONIA Index 7.5 Turkey 6.5 20 20 Brazil 5.5 Russia Indonesia 15 SoA Mexico 4.5 Kazakhstan Malaysia Chile 10 Korea 3.5 Philippines Peru Hungary Poland China 5 2.5 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA Source: Thomson Reuters, Moscow Exchange, IMF and World Federation of Exchanges

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