On criteria of including/excluding securities issued under bond programmes in/from the Bank of Russia Lombard List

For the purpose of using securities issued under bond programmes as collateral for Bank of Russia refinancing operations, the Bank of Russia set the criteria of including/excluding the said securities in/from the Bank of Russia Lombard List.

1. The Bank of Russia Board of Directors takes a decision on including/excluding the Bond Programme in/from the Bank of Russia Lombard List considering the following:

the issuer of bonds issued under the bond programme (hereinafter, Bonds) is a legal entity, resident of the Russian Federation;

the issuer of Bonds, which is a credit institution, has at least one rating no lower than ВВ / Ва2 assigned by international rating agencies Standard & Poor’s, Fitch Ratings / Moody’s Investors Service. The issuer of Bonds, which is not a credit institution, has at least one rating no lower than В- / В3 assigned by international rating agencies Standard & Poor’s, Fitch Ratings / Moody’s Investors Service;

Bonds are listed on a stock exchange operating on the territory of the Russian Federation where the Bank Russia acts as a bidder;

Bonds are senior unsecured debt of the issuer, their redemption and coupon payments do not depend on changes in the credit quality of third parties;

the content of the first part of the decision on bond issue (bond programme) includes:

— information that the list of conditions, which can influence the value and credit quality of the respective debt obligation and which the issuer can define in the second part of the decision on bond issue, will be limited by the following: the size of the coupon rate (or information that bonds are non-coupon), the currency of bond issue, the dates of redemption of bond issue and the respective coupon payments, the value of bond issue,

— information that the issuer issue only non-coupon bonds or fixed coupon income bonds without embedded options,

— information that bond programme is not subject to changes in the future (excluding cases where changes are required pursuant to the Russian Federation legislation);

— information on other significant circumstances.

2. Should the issuer of Bonds fail to comply with the Bank of Russia credit rating requirements set in Clause 1 of this information notice, the inclusion of new issues of securities issued under the issuer’s bond programmes in the Bank of Russia Lombard List is suspended and the adjustment of the market value of Bonds used as collateral for Bank of Russia refinancing operations is made using the adjustment ratios/discounts set by the Bank of Russia.

The Bank of Russia Board of Directors takes a decision to suspend using the issuer’s Bonds as collateral for Bank of Russia refinancing operations.

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24.12.2014 00.00.00