Along with Troika Dialog and OAO Gazprombank, JPMorgan (NYSE:JPM) is helping to manage the largest international markets ruble bond sale in the history of Russia.
The bond issuance could reach to as high as $3 billion, and is hitting the markets at the right time, as investors seek emerging markets investments with higher yields outside of the U.S. dollar, which continues to collapse.
According to Deputy Finance Minister Dmitry Pankin, the sale could come about as early as November 2010.
The problem with the issuance is the ruble itself, which while expected to increase in value, has no benchmark for ruble Eurobonds to be issued off of, so pricing them will be a challenge.
It remains to be seen if the hunger for alternatives for the U.S. dollar will help the issuance of the ruble bonds be successful. The ruble isn't considered that attractive either, but higher yields may overcome that.