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Expected yield to maturity of 74th issue bonds of the city of Moscow announced

24.05.2021 64 просмотров

The Department of Finance of the city of Moscow informs about the expected level of yield to maturity of bonds of the 74th issue of the City bond (internal) loan of Moscow.

Bond placement parameters:

- number of bonds to be placed: 70 million units;

- bond placement price: 1 000 rubles (100% of the face value);

- yield benchmark: plus 60–70 bps to G-curve* value with comparable duration;

- coupon rate: set by the Bond Issuer on May 26, 2021 on the basis of applications submitted by participants in the placement of bonds to conclude transactions for the sale and purchase of bonds;

- coupon period: 182 days (14 coupon periods);

- maturity of bonds: 7 years.

Bonds included:

- to the “First Level” section of the List of Securities Admitted to Trading on PJSC Moscow Exchange;

- to Register of Sustainable Development Bonds of the International Capital Markets Association (ICMA).

The Analytical Credit Rating Agency (ACRA) assigned the issue of Moscow bonds RU26074MOS0 a credit rating of AAA(RU).

“The Russian green bond market is in the process of formation, however, more and more financial market participants are showing interest in this segment. The Moscow bonds of the 74th issue will be the first sub-federal securities in Russia that comply with the international and all-Russian principles of green bonds, & nbsp; - said the Minister of the Moscow Government, Head of the Department of Finance Elena Zyabbarova. 

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– Forming a yield target of 60-70 basis points to the G-curve value with a comparable duration, we are counting on high demand from both Russian investors, as well as non-residents.

Together with the co-organizers of the placement, it is planned to implement the admission of Moscow's green bonds for servicing in Euroclear and Clearstream - the largest international settlement and clearing systems. This will make them available to investors around the world. It is worth noting that, in accordance with the Tax Code of the Russian Federation, non-residents are exempt from paying tax on income received by them from interest income on government securities.

I would like to note that this year Moscow entered the sub-federal debt market after an 8-year break. On April 27, the placement of bonds of the 72nd issue in the amount of 35 billion rubles took place. According to the results of the open auction, demand exceeded our offer by 2.3 times. Currently, these securities are traded on the secondary market at a price above par,” said the head of the Moscow Department of Finance.

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