Russian banks to sell new OFZ govt bonds for households from Sep 2

MOSCOW, Aug 29 (PRIME) -- Russia’s Finance Ministry will issue 15 billion rubles of new OFZ government bonds under new rules on September 2, and four banks will begin selling them on the same date, Deputy Minister Sergei Storchak told reporters on Thursday.

“The OFZ-n new format bonds will be offered to people through a larger number of outlets of the agent banks including Sberbank, VTB Bank, Promsvyazbank and Post Bank,” he said.

“We have decided to make the issue relatively small, it will amount to 15 billion rubles at the first stage. The offering period is limited, until the end of February. We are ready to issue additional bonds if necessary.”

People will not need to pay a commission to the agent banks for transactions with the new bonds unlike it was with previous issues. The commission is to be paid by the issuer, the Finance Ministry. The minimal transaction will be reduced to 10,000 rubles from 30,000 rubles. The clients will also be able to use the new bonds as pledges to get loans in the agent banks.

(66.4127 rubles – U.S. $1)

End