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Domodedovo airport bonds fall on owner arrest

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Bloomberg

Domodedovo International Airport bonds pared the steepest drop on record after chairman and owner Dmitry Kamenshchik was put under house arrest instead of jail and a prosecutor said the charges against the businessman are unlawful.
The bonds fell the most on record recently and the yield surged 294 basis points to 9.38 percent, the highest since March, after investigators announced they were holding him. The bonds pared losses, bringing the yield to 8.36 percent after prosecutors told a court in Moscow that the charges by investigators against Kamenshchik are unlawful and asked to free him. The court put the businessman under house arrest until April 18, although initially investigators had been planning to seek to place Kamenshchik under custody in jail.
Kamenshchik is being investigated for allegedly providing substandard safety at the airport during the January 2011 suicide bombing, the investigative committee said on their website. The blast in the airport’s international arrivals hall killed 37 people, according to RIA Novosti, and wounded about 170. A Moscow court is considering whether to place the 47-year-old executive under arrest.
Domodedovo said Kamenshchik’s detention is groundless and asked for an objective investigation. Several other officials who worked at the airport at the time of the attacks have also been detained. The facility, which handled about 30.5 million passengers in 2015, is one of Moscow’s three main airports.
The airport’s business is sustainable with a low level of debt, while the news from the investigation will continue to place pressure on the bond, said Alexander Polyutov, an analyst at Promsvyazbank.

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