November 13, 2020

Changes in the procedure of corporate bonds issue

By order of the Director Of the Agency for capital market development No.2000-8 of 06.11.2020, changes were made to the Rules for issuing securities and state registration of issuance of equity securities No.2000 of 30.08.2009. Changes are related to issuing corporate bonds.

These changes include:

• expanding the number of business entities who have the right to issue corporate bonds (in particular, limited and additional liability companies can now do this);
• if the corporate bonds issue exceeds the amount of the Issuer’s own capital, the Issuer is obliged to provide security for the excess amount;
• additional conditions are imposed in case of placement of corporate bonds by open subscription;
• the term of a positive opinion on financial statements is reduced from three years to one year;
• opportunities are being created for more active involvement of underwriters.

The proposed changes are aimed at create new tools for raising funds and boosting investment in this area.