April 11, 2018 / 10:35 AM / 3 months ago

Russia's Rusal to be ejected from CEMBI emerging debt indexes-JPMorgan

LONDON, April 11 (Reuters) - Russian aluminium producer Rusal is no longer eligible for JPMorgan’s CEMBI index group of emerging market corporate bonds as a result of recently imposed U.S. sanctions and will be excluded on April 30, JPMorgan said in a statement.

The exclusion will be done as part of the end-of-month rebalancing of the indexes, the bank added.

As of Friday, April 6, Rusal has a weight of 0.12 percent and 0.15 percent in the CEMBI Broad Diversified and CEMBI Diversified indexes respectively, JPM said in a statement seen by Reuters that was sent to clients late on Monday.

The CEMBI index suite is used as a benchmark for funds managing $96 billion, the firm said, adding that its emerging market government bond index (GBI-EM) and flagship emerging market bond index (EMBI) were not affected.

Rusal is among 12 firms targeted on Friday with sanctions by the U.S. Treasury Department, which said the entities were profiting from a Russian state engaged in “malign activities” around the world. (Reporting by Sujata Rao; editing by Abhinav Ramnarayan)

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