Securities Portfolio and Capital Markets Funding
Our total securities book increased 12.4% to 1.68 trln RUB as of end 2012.
Our portfolio remains dominated by fixed income securities with a share of 97.4% as of end 2012, the bulk of which is Russian Sovereign bonds, comprising 54.8% of our total securities position (up 2.8 pp y-o-y). Such a structure is defined by our approach to securities on our banking books as predominantly a means of liquidity management, rather than a risk-taking instrument.
The corporate bond portfolio was the most rapidly growing part of our securities book in 2012, climbing 22.3% to reach a share of 35.4% of our total securities portfolio. Such growth was a function of the rapid development of both domestic and external debt capital markets in 2012. Conservative approach to managing our securities books is also reflected in the shift of the structure of our corporate bond book — the share of investment-grade rated positions in this portfolio grew to 52.1% as of end 2012, versus 44.4% the year before.
SECURITIES PORTFOLIO BREAKDOWN
| 2012 | 2011 | |||
|---|---|---|---|---|
| RUB bln | % of total | RUB bln | % of total | |
| Federal loan bonds (OFZ) | 777 | 46.4 | 708 | 47.5 |
| Corporate bonds | 594 | 35.4 | 486 | 32.6 |
| Russian Federation Eurobonds | 141 | 8.4 | 66 | 4.4 |
| Municipal and Subfederal bonds | 118 | 7.0 | 134 | 9.0 |
| Corporatle shares | 43 | 2.6 | 86 | 5.8 |
| Foreign Government bonds | 3 | 0.2 | 10 | 0.7 |
| Total | 1,676 | 100.0 | 1,490 | 100.0 |
Source: Sberbank management accounting
BOND PORTFOLIO BREAKDOWN BY GRADE
| RUB bln | 2012 | 2011 | ||||
|---|---|---|---|---|---|---|
| Investment grade | Speculative grade | Not rated | Investment grade | Speculative grade | Not rated | |
| Russian Sovereign Eurobonds | 141 | — | — | 66 | — | — |
| Corporate bonds | 310 | 247 | 37 | 216 | 197 | 73 |
| Government bonds (OFZs) | 777 | — | — | 708 | — | — |
| Municipal and sub-federal bonds | 81 | 37 | — | 93 | 41 | 0 |
| Foreign government bonds | — | 3 | — | — | 10 | — |
| Total | 1,309 | 287 | 37 | 1,083 | 248 | 73 |
Source: Sberbank management accounting
In 2012, Sberbank was relatively active on the debt capital market, raising an equivalent of 256 bln RUB via public bond issues and syndicated loan deals, compared with 71 bln RUB in 2011. As of end 2012, the total amount of funding raised from these sources stood at 352 bln RUB.
DEBT ISSUES IN 2012
| Type of liability | Currency | Amount, bln | Amounts outstanding, bln | Maturity, years | Coupon/ interest rate |
| Syndicated loan | USD | 1.50 | 1.50 | 3 | LIBOR+1,50 |
| Syndicated loan | EUR | 0.5 | 0.5 | 5 | EURIBOR+1,50 |
| Eurobonds | CHF | 0.41 | 0.41 | 3.5 | 3.100 |
| Eurobonds | USD | 1,30 | 1,30 | 5 | 4,950 |
| Eurobonds | USD | 1.00 | 1.00 | 7 | 5.180 |
| Eurobonds | USD | 1.50 | 1.50 | 10 | 6.125 |
| Subordinated bonds | USD | 2.00 | 2,00 | 10 | 5.125 |
Source: Sberbank management accounting