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MICEX Stock Exchange, the leading Russian stock exchange, has announced that it is hosting Russia’s first issue of “exchange bonds” – bonds registered by an exchange rather than the Federal Financial Markets Service (FSFR), Russia’s financial regulator.
On March 25 2008, RBC Information Systems Company, one of Russia’s leading media companies, started to place its exchange bonds on the Exchange in a move that provides further evidence of the growing maturity of the Russian capital markets.
According to the CEO of the MICEX Stock Exchange, Alexei Rybnikov: “This new type of security could become a convenient instrument for managing liquidity, diversifying credit portfolios and covering cash shortfalls. Exchange bonds could replace or supplement programs of issuance for bills of exchange. The exchange bond market has a bright future, with a potential volume comparable with the markets for corporate bonds and bills of exchange.”
The launch of the new instrument was made possible thanks to amendments to the legislation regulating the securities market, changes initiated by the FSFR.
The RBC issue is for RUR 1.5 billion (US$ 63.3 million) of non-convertible, interest-bearing bearer exchange bonds with a nominal value of RUR 1,000. Alpha-Bank is the underwriter.
