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. Last Updated: 07/27/2016

Brokerage Prepares 500M Ruble Bond

Renaissance Capital announced Thursday that it will become the first Russian investment company to issue bonds.

The 500 million ruble issue, which is to be placed through MICEX, will have a maturity of two years, a face value of 1,000 rubles each and pay a 2.5 percent coupon every 90 days. The bonds will have a put option at each coupon date.

The company plans to market the bonds in the second part of October.

"It is logical that not only banks and corporates now issue bonds, but investment companies as well," said Alexander Ovchinnikov, a fixed-income analyst at Troika Dialog, which itself has issued ruble promissory notes. "They are looking to create a credit history and attract clients."

Konstantin Demchenko, head of ruble fixed income at National Reserve Bank, said, however, that the yield on the Renaissance paper appeared too low to attract much demand.