Russia’s Finance Ministry suggests issuing OFZ bonds for households

MOSCOW, Nov 2 (PRIME) -- Russia’s Finance Ministry has suggested the government issue OFZ bonds for households to facilitate investment in state securities, as seen by PRIME in a document published on the government’s Web site for disclosure of legal information late on Tuesday.

The bonds will not have secondary circulation, but can be submitted to the ministry for a buyback before maturity, but only after a minimal term of holding and at a price defined by the ministry.

The ministry will be able to attract banks and other financial institutions, which signed a corresponding agreement with the ministry, to the placement, exchange, buyback, servicing and redemption of the OFZ bonds. The draft also allows the ministry to offer OFZ bonds denominated in rubles and in currencies of other countries that participate in BRICS and the Shanghai Cooperation Organization.

“Creating an alternative source of debt and forming corresponding price guidances for the Russian issuers is pressing under the current conditions. The most promising option here is placement of Chinese yuan–denominated OFZ bonds, that are aimed at in-land investors from the People’s Republic of China, on the Moscow Exchange,” the document read.

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