The renminbi-denominated Dim Sum bonds hit a 15-month low as a result of Russia’s financial turmoil as bonds issues by Russian banks including Gazprombank and VTB Group slid 1.65% in December, according to Bank of America Merril Lynch’s Dim Sum Index.
From the beginning of this year, Russian Dim Sum debt depreciated by 2%, while the other 22 nations participating in the Dim Sum scheme saw an increase their bonds’ value.
Gazprombank’s 1 bln renminbi ($161 mln) stock of 4.25% January 2017 Dim Sum bonds depreciated to 89.4% on December 16. Yields rose 9.9% compared to late November. These bonds depreciated by 2.8% in December and 7.1% this year.
VTB Group’s 2 bln renminbi stock of 4.5% October 2015 bonds fell by 2.8% to 95.9% of their initial value. Yields rose to a record 9.5%.
Dim Sum bonds are renminbi-denominated debt equities issued outside of mainland China. These bonds are traded mainly in Hong Kong and are popular among international companies seeking renminbi-denominated assets.