UBRD’s Exchange Bonds to Be in Circulation for 4 Years
25 February 2013 (10:01)
February 25, 2013. The Ural Bank for Reconstruction & Development’s Board of Directors decided to increase the maturity terms for the three upcoming issues of their exchange bonds from three to seven years. These changes touch upon the bank’s BO-02, BO-03, and BO-04 issues, the UBRD’s press service reports.
The decision to prolong the circulation period has to do with the coming into effect of the amendments to the Federal Securities Market Act; under these amendments, the stock market players must make changes in the documentation relating to the issues that haven’t been launched yet; otherwise the issues won’t be allowed to enter MICEX.
‘Given these new requirements and given also the fact that the new reading of the law lifts any upper limits on a bond issue’s maturity, it was decided to prolong the circulation period of our new bonds. This will result in lower overheads relating to the management of the loan infrastructure, such as registering new share issues,’ says Vladimir Zotov, the UBRD Financial Institutions & Investment Services Director.
The decision to prolong the circulation period has to do with the coming into effect of the amendments to the Federal Securities Market Act; under these amendments, the stock market players must make changes in the documentation relating to the issues that haven’t been launched yet; otherwise the issues won’t be allowed to enter MICEX.
‘Given these new requirements and given also the fact that the new reading of the law lifts any upper limits on a bond issue’s maturity, it was decided to prolong the circulation period of our new bonds. This will result in lower overheads relating to the management of the loan infrastructure, such as registering new share issues,’ says Vladimir Zotov, the UBRD Financial Institutions & Investment Services Director.
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