Page 79 - RusRPTAug19

8.5.1 Fixed income - bond news
Russia's Finance Ministry will limit the supply of federal OFZ ruble bonds
by about RUB40bn until the end of 2019, due to the issue of a special ruble- denominated OFZ bond that is part of the re-capitalization scheme of state- controlled development bank Vnesheconombank (VEB).
As reported by bne IntelliNews, VEB will have part of its debt to the central bank covered by acquiring RUB212bn worth of newly issued OFZ at five times less the nominal value of RUB40bn, and swapping the OFZs for debt related to bailing out failed Svyaz Bank and Globex Bank.
The head of the debt department of the Finance Ministry told Reuters on August 1 that the limit for domestic issuance of OFZs in 2019 will be cut by RUB40bn, and not RUB212bn, as a result of the VEB support scheme.
Total OFZ issuance for 2019 is budgeted at RUB2.28 trillion (net issuance of RUB1.57 trillion and refinancing worth RUB0.7 trillion).
Since the beginning of 2019 the Finance Ministry has been holding record of
79 RUSSIA Country Report August 2019 www.intellinews.com