> Compared with the preliminary guidance, the new issues were placed with lower spreads over the UST 5, 10 and 30 (of 230 bps, 240 bps and 250 bps, respectively).

> We expect the high interest in the new placement and unsatisfied demand for the new paper to lift prices on the secondary market, where the "old" Russia 18, 30 and 28 look significantly undervalued.

> Given the final pricing of the new Sovereign Eurobonds, we think the old Russia 18, 30 and 28 are undervalued, offering an attractive premium over both the yield curve and the Z-spread. The previous day, demand had already lifted the Russia 30 and 20, as well as the longest old issue, the Russia 28 (which was traded at 181.000%, although the high cash price of the asset prevents several investors from purchasing it).

> Immediately following the start of trade in the new Russia 17, 22 and 42, their prices on the secondary market rose 0.625-1.875 pp to the re-offer prices of 99.657%, 99.277% and 97.553%, respectively.

> Since we do not expect liquidity in the Russia 18 and 28 to recover, we recommend buying the Russia 30 (119.250-119.438%, yield 4.12%, G+255, Z+224), which retains premiums of around 50 bps over the yield curve and 20-25 bps over the Z-spread. The Russia 5y CDS declined 3 bps on Thursday to 173-181 bps.