Infrastructure bonds: new investment opportunities for non-governmental pension funds
The Bank of Russia proposes to change the rules for investing pension savings and reserves so that non-governmental pension funds could increase their investments in long-term infrastructure bonds with variable payments. These bonds are issued to finance the construction of infrastructure facilities that promotes the development of the national economy.
Currently, these bonds are part of a single limit for higher-risk assets. It is proposed to provide a separate limit for investing in these bonds that should be no more than 5% of the portfolio of pension savings and reserves.
The innovation will not impact riskier types of securities with variable payments, namely perpetual bonds, structured bonds, as well as securities with a low credit rating. They will remain part of the single limit for higher-risk assets.
Public discussion of the projects will continue until 14 June.