The 1^st direct placement of foreign state bonds in Russia (2010)

The Federal law “On securities market” allows foreign issuers to place bonds in Russia. The governing law of such bonds may be a foreign one.

The task was to register a prospectus for the placement of foreign state bonds.

1. Drafting of a term sheet.
2. Review of decisions of foreign governmental bodies necessary for bonds placement in Russia.
3. Preparation of the prospectus and its registration with the Bank of Russia.

The bonds placement was successful.

There is relevancy for foreign issuers (including corporate and international financial organizations) from “friendly” jurisdictions who intend to raise finance on the Russian market independent of foreign nominees from jurisdictions “non-friendly” to Russia.

In addition, it is possible to raise finance on the Russian market via SPV, a limited liability company, which is a subsidiary of a foreign mother company from a “friendly” jurisdiction. A Kazakhstan company КТЖ applied this model (see a publication in Russian: АО «НК «КТЖ» успешно разместило облигации в российских рублях — Forbes Kazakhstan)