Debt Financing in Russian Middle-Sized Companies

Abstract

Russian corporate bonds market is mainly represented by middle size companies. Big Russian companies known as “blue chips” prefer western markets for public debt placement and attraction of syndicate loans because the necessary funding frequently exceeds Russian investors’ limits. On the other hand small sized companies don’t even have an access to public markets because of capital adequacy restrictions for liquid and demanded securities. In this case the key question is the right positioning of middle sized companies for successful bonds placement and reduction for cost of debt. This article is aimed to consider the placement conditions and the ways of improvement of corporate debt placement.