Jump to content
House Price Crash Forum

Russian Railways To Offer Debt In Sterling


Recommended Posts

http://www.telegraph.co.uk/finance/newsbysector/transport/8341398/Russian-Railways-will-sell-sterling-debt-to-upgrade-network.html

Even though I posted a slightly TIC title this is interesting that the Russkies, no friends of us Brits after the spy shennanigans are issuing debt in sterling and not dollars or euros. Is it because so many billionaire russians live in London or do they think the Euro and the Dollar are both toast and Georgie boy is engineering fortress sterling.

Link to post
Share on other sites

You beat me to this.

Have you considered that the Russians are betting Sterling will be toast and are betting they'll be able buy more pounds with their rubles? If sterling halves in value against the ruble over the coming years it would be a very good investment.

It could be that Lazards with Mandleson as lead advisor are in the deal, he has a lot of dodgy Russian mates.

Link to post
Share on other sites

http://www.telegraph...de-network.html

Even though I posted a slightly TIC title this is interesting that the Russkies, no friends of us Brits after the spy shennanigans are issuing debt in sterling and not dollars or euros. Is it because so many billionaire russians live in London or do they think the Euro and the Dollar are both toast and Georgie boy is engineering fortress sterling.

If they are borrowing pounds, it would be because they think the pound is toast, and it will be very cheap to pay it off, or alternatively to tap into the Russian billionaire market, or because they can get a cheaper interest rate.

Link to post
Share on other sites

You beat me to this.

Have you considered that the Russians are betting Sterling will be toast and are betting they'll be able buy more pounds with their rubles?

I don't think so.

They are offering the bonds in London because that's where the expertise is and that market demands a "hard" currency.

As they will be using the money to build a high speed rail network, they will have concluded that they can "suffer" the risks of the currency because the fares that they will charge for usuing the railway, once it is in operation, will be "western" fares, as is the norm for all such railways.

tim

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.