Vnesheconombank issued short-term bonds in additional placements to companies and corporations on 7 and 8 November 2018.
The Bank raised 28 billion roubles, including 20 billion roubles from bonds with a maturity of 14 days and a coupon of 7.22% p.a. and 8 billion roubles from bonds with a maturity of 21 days and a coupon of 7.27% p.a.
The par value of one bond is 1,000 roubles. The bonds were sold at 100% of their par value. The coupon is payable at maturity.
The arrangers of the bond issue are Gazprombank and Svyaz-Bank.
The bonds are on the Moscow Exchange’s Quotation List Level 1. The depository is National Settlement Depository.
State Duma Committees Agree to New Legislation on VEB.RF’s Coordination of Development Institutions
The Budget and Taxes Committee and the Financial Market Committee of the State Duma supported new legislation clarifying the functions of VEB.RF. The committees recommended that the Council of the State Duma should introduce it for its first reading in the lower house.
The Russian Government introduced two bills to the State Duma on 31 October 2018, amending the Budget Code, the Law “On Bank for Development” and other laws that regulate the activities of Russian Export Center and Russian Small and Medium Business Corporation.
It is proposed that the budget legislation should include a new mechanism, namely the approved amount of authorised capital. This is the portion of authorised capital that, as resolved by the government, will be allocated to a development institution for new projects.
VEB is assigned the role of a coordinator of development institutions (as resolved by the Russian Government). For this purpose, VEB will participate in managing development institutions and formulate procedures for joint work on projects in order to ensure that instruments of support will be used in an integrated manner.
The draft legislation also concerns the name of Vnesheconombank; the renamed institution will become State Development Corporation VEB.RF. The new name reflects the role of VEB and its tasks assigned by the Russian President and the Russian Government.