Form of notification on placement of bonds under foreign law developed

The Bank of Russia has defined the procedure to be used by Russian issuers to notify the regulator about placement of bonds under foreign law. The draft regulation was published on the Bank of Russia’s website for regulatory impact assessment.

Pursuant to the law adopted last December and aimed at the facilitation of securities issuance, Russian issuers are allowed to place securities abroad under foreign law. Such bonds will not be registered by the Bank of Russia or Russian stock exchange. After placing bonds under foreign law, a Russian issuer must notify the Bank of Russia.

The form of this notification, the requirements for its contents, as well as the time frame and the procedure for its submission are determined by the Bank of Russia. According to the draft document, the notification must contain information about the issuer, securities type, placed amount, face value, total property contributed as payment for placed securities, and the start and end dates of placement.

Suggestions and comments about the draft regulation will be accepted by 5 March 2019.