Repayment of US$7b loan a signal to buy Rosneft bonds: investors

It is the largest foreign debt obstacle the Russian oil company must cross in 2015: investors


AS OAO Rosneft pulls together funds to repay US$7.1 billion of loans due on Friday, some investors say it's the moment to buy the Russian oil company's bonds after the best week for crude in almost four years.

"Now is a good time," Dmitry Postolenko, who helps manage about US$3 billion in Russian debt at Kapital Asset Management in Moscow, said on Feb 6. "Paying off the loan will wipe off a big chunk of its total debt."

While Mr Postolenko doesn't hold the energy producer's bonds, favouring debt from OAO Lukoil and OAO Gazprom, he plans on buying short-dated notes for clients tolerant of the "risks".

Rosneft's March 2017 dollar securities jumped last week, with the yield sliding 1.47 percentage...

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