This is the first time that ruble bonds are being released not by a bank or a financial company, but by a company that produces machines.
The total volume of “Caterpillar’s” ruble bonds makes 5 bln rubles, which approximately equals $ 163 mln. The annual interest rate is 7.5%.
Earlier, ruble obligations were released only by banks, like, for example, “Radobank” or the European Bank for Reconstruction and Development.
Experts say that “Caterpillar” made this step not only for the sake of having bonds in various currencies. It is seriously determined to develop business in Russia. Russian financial analyst Kirill Markin says:
“This step shows that “Caterpillar” is loyal to Russian investors and is interested in the Russian market in whole. It is known that “Caterpillar” is very interested in cooperation with Russian machine-building enterprises. The company is going not only to invest in machine-building in Russia, but also to create several joint ventures. And, it is going to attract money of Russian investors in these ventures. This would be beneficial for Russia as well, for it will make “Caterpillar’s” activities in Russia more transparent for Russian businesspeople.”
“Caterpillar” already has an enterprise in Russia, near St. Petersburg, which produces details for machines that are later assembled from these details at the company’s enterprises in Europe.
“The fact that such a well-known company as “Caterpillar” is not afraid to have business in Russia will probably inspire other Western businesspeople to follow this example,” another Russian financial analyst, Alexey Rybakov, says.
“From the point of view of profitability and the tempos of development, “Caterpillar” is probably the world’s best machine-building company,” Mr. Rybakov says. “The “Moody’s” agency’s rating for “Caterpillar” is “A”, and that of “Standard & Poor’s” – “A2”, which is very high. Experts predict that “Caterpillar” has very good prospects for at least the next 50 years.”
Meanwhile, Russia’s reputation as a place to have business in is rapidly changing for the better. Here is Kirill Markin again:
“The fact that “Caterpillar” has released ruble bonds is obviously significant for the entire Russia’s economy. Let us hope that this will serve as an example for other foreign companies to follow.”
At present, the world’s market of heavy machine-building is divided between 4 giant companies, and “Caterpillar” is one of them. About one third of all the heavy machines that are now being sold in the world are being sold by “Caterpillar”.