Sberbank on Friday, December 9, informed the investors that the volume of the first edition of structural bonds will amount to RUB 1 billion Paper face value of 1 thousand RUB. is planned to be released for six months. Their minimum yield, taking account of the coupon will amount to 0.01% per annum, but depending on currency fluctuations, investors can earn substantially more. The Bank plans to place bonds in mid-December.
Under the terms of additional yield will accrue based on the difference in the dollar on the date of accommodation and the dollar exchange rate on the maturity date of the paper. In other words, the higher the dollar will rise against the ruble, the more you get the bondholders.
But to get additional income will only be possible with a moderate rise of the dollar. If the dollar will rise too much (more than 10.89%), then investors will have to settle for a minimum yield of 0.01% per annum. For example, if the dollar when placing bonds will cost 65 rubles., in the case of growth rate to maturity is higher 72,08 RUB will to act is “conditions subsequent condition”, give an example in Sberbank.
This is the first placement of structural bonds for Sberbank. In March 2015, Moscow exchange registered 34 issues of structural bonds of Sberbank for a total volume of 50 billion rubles, and in October of the bonds to 200 billion rubles.
The Bank said that the volume of structural bonds will depend on market conditions and interest rates. “It is, in fact, a structural note. Sberbank will work on Commission,” says the portfolio Manager of UK “Kapital” Dmitry Postolenko.
The calculation of the banks
The Director of the Department of risk management UK “EFG asset Management” Alexander Baranov believes that structural bonds are unlikely to buy institutional investors — state pension funds (NPF). “Funds have very strict legal restrictions on the purchase of risky assets, including bonds with a variable coupon, if it is not tied to inflation or interest rate. The share of such instruments may not be 10% of the portfolio of pension savings,” he says. According to the financier, pension funds and so a surplus of tools: the average proportion of illiquid shares and bonds, not included in top quotation list of the stock exchange, mortgage participation certificates in the NPF portfolio is 15%. “Buy structural bonds nowhere. In addition, there are currency deposits,” says Baranov.
“Structural bonds — conventional product with capital protection plus exposure to the asset. In fact, the savings Bank offered investors protection against the devaluation of the ruble,” — says the Manager “the alpha-the Capital” Evgenie Kochemazov. But, according to him, judging by the forecasts of investment banks, most foreign investors are betting on the ruble, and therefore investments in ruble-denominated bonds more interesting. A simple purchase of the same Eurobonds, for example through specialized mutual Funds, according to Kochemasova, also looks interesting: currency exposure with the ability to receive the coupon yield and tax deduction.
Market participants believe that such tools can be interesting to banks, and private investors wishing to capitalize on the growth of the dollar. “Banks may be interested in, because it is, in fact, investment in the dollar, but the ruble instrument and it is not necessary to establish reserves as at currency positions”, — said the Treasurer of a major Bank.
Structural bonds — instruments for qualified investors who understand the essence of the product, warns the Chairman of the Board of Directors of the management company “ronin trust” Alexey Gomin. “There are risks that private investors, not understanding that by investing in structured bonds, and not to make money, will be greatly disappointed,” he fears. The Bank will certainly lose nothing, as hedge their risks, adds the financier.
What is the structural bonds
Structural bonds differ from traditional bonds binding coupon to various assets, such as the cost of metals, shares, indices. In this part of the funds is usually placed in a risk-free asset that allows you to return to investors the principal amount of the loan and part is invested in risky assets.
The last placement of such securities in March 2015. Then ROSBANK placed structural bonds worth 1 billion rubles with a coupon rate of 0.01% per annum and the additional revenue that was tied to the dynamics of the value of shares of the company “Yandex”.
Their structural bonds have, in particular, VTB and UniCredit Bank. In total, according to banks registered structural bonds more than 200 billion rubles. According to the head of Department for debt markets of ROSBANK Anton Kiryukhin, the demand for such instruments may reach 15-20 billion rubles per year.