Sberbank announced on Wednesday, April 27, the flotation of its second issue of exchange-traded structural bonds.
The order book was opened on April 24. The bonded loan (Series BSO-OGZD_DIGIPRT-24m-001Р-02R with maturity of 728 days) guarantees fixed coupon yield of 0.01%, the return of par value at redemption and, this being the case, makes it possible to generate additional income at a rate of up to 25.32% in US dollars if the underlying asset grows in value, the lending institution said. The bank specified that the underlying asset is ADRs on Gazprom shares.
This is a second issue of the product. As Sberbank noted, on December 16, 2016 the bank floated debut exchange-traded structural bonds worth Rub 456 mln. "The new issue, like the previous one, is designated for a big group of investors starting individuals to institutional investors of the various type," the press release pointed out.
This year Sberbank intends to offer investors some products pegged to a wide range of market indicators (stocks, commodities, interest rates, etc.). A specific indicator will be selected taking into account customer interests and depending on the prevailing market environment. "So the exchange-traded structural bond program will allow investors to cash in on the broadest array of market indicators," Sberbank said in the press release.
