The Bashkir Soda Company (BSC), the largest soda producer in Russia, has recently become the news headliner after activists defended the Shihan Kushtau, which the company was planning to use for soda extraction. Consequently, BSC bonds fell noticeably and now provide an attractive yield.
Bonds maturing in January 2023, now provide 8.08% yield, which is almost 2% increase in yield since July. Similarly, bonds maturing in June 2025 now give 7.6%, a 1% increase since July.
In 2019, BSC received a license for the raw material development of Shikhan Kushtau. However, this caused strong discontent among local residents and eco-activists and led to rallies and clashes with security officials. As a result, the head of the Republic of Bashkortostan announced the suspension of exploration work on the mountain and asked the Ministry of Natural Resources of the Russian Federation to assign the status of a specially protected natural zone to Shikhan Kushtau.
Although, the bonds are looking tempting, investors must keep in mind that the future of BSC is uncertain. The trading of BSC stock is suspended on MOEX.