Seligdar to offer 5-year exchange bonds in gold in March–April

MOSCOW, Mar 21 (PRIME) – Gold producer Seligdar plans to offer 3 billion rubles of 5-year exchange bonds nominated in gold at the end of March or at the beginning of April, Russia’s first such paper, Alexei Rudenko, vice president of Gazprombank and head of the bank’s department for the debt market instruments, said in an online conference on Tuesday.

“This instrument will become the first issue of gold bonds in the history of the Russian market,” he said, adding that the guidance for quarterly coupons amounts to 5.5% annually.

“It is planned that the bidding book will be collected at the end of March or the beginning of April, but I think that we will announce a definite date soon because we already have the issue documents registered.”

The company will offer the securities to a wide range of investors, not only to qualified investors, he added.

The face value of the bonds will amount to 1 gram of gold. Settlements will be based on the central bank’s official price for gold and be done in rubles.

Gazprombank, Sinara investment bank, and Russian Agricultural Bank will organize the offering.

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