New Type of Securities Put into Circulation in Russia
OREANDA-NEWS At the first stage, structural bonds will be placed only among qualified investors.
A structural bond is a security that does not provide for a guaranteed return to their owners of the nominal value of the paper. According to the law adopted by the State Duma, the payment to the owner of the nominal value, part of the value or income on such a security will depend on the occurrence or non-occurrence of certain circumstances that must be fixed in the decision to issue the security.
Payment of structural bonds may be made in money, securities, property rights, or other rights having monetary value. The structural bond cannot be repaid ahead of time at the discretion of the Issuer, except in cases not depending on the will of the Issuer.
The law provides that the placement, circulation and redemption, including early redemption, of structural bonds, disclosure and provision of information will be carried out in a similar manner to the rules for bonds, taking into account certain features. Issuers of structural bonds will be credit institutions, brokers, dealers and specialized financial companies. At the same time, such companies, dealers and brokers are entitled to place only such structural bonds that are secured by a pledge of monetary claims or other property. The Central Bank is empowered to establish criteria for structural bonds to expand the composition of purchasers.
At the first stage, structural bonds will be placed only among qualified investors. Now the Central Bank together with the working group is developing criteria that will allow unskilled investors to buy these securities in the future.
Russian government bonds are one of the most profitable in the world in terms of the difference between profitability and inflation, taking the second place in the world after Brazilian ones in terms of attractiveness for investors. It is noted that the yield of Federal loan bonds (OFZ) with a maturity of 10 years in Russia is 7.32%, and the yield minus inflation is 4.97%.
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