Euroclear Bank, NSD Launch Cross-border Services for Russian Bonds

Euroclear Bank said that post-trade services for Russian corporate and municipal bonds will commence on 30 January. Using its account with Russia’s central securities depository – National Settlement Depository (NSD) – all Euroclear Bank clients investing in corporate and municipal debt will be able to settle trades and deposit their positions with Euroclear Bank.

The new service complements NSD and Euroclear Bank’s offering for Russian government bonds, known as OFZs (Obligatsyi Federal’novo Zaima), which launched last February. Municipal bonds and corporate bonds issued in 2012 and later are eligible for the service.

“We have been working in cooperation with NSD and Euroclear to launch the post-trading services for the Russian corporate and municipal bonds,” said Anton Siluanov, finance minister of the Russian Federation. “We endeavour to attract investors, to make our market more transparent and to raise interest in Russian securities.

“Great work has been done and significant changes have been introduced to the Russian legislation, and in particular to the Tax Code, to the Law ‘On the Securities Market’, and the Law ‘On Joint Stock Companies’. I am confident that this is an important step towards establishing an International Financial Centre in Moscow that aims at providing better accessibility and lower cost of long-term financing for Russian companies.”

Frederic Hannequart, chairman of Euroclear Bank, added: “Following on from the success of our OFZ service, we are delighted to now offer services for municipal and corporate assets. The growing appetite shown by investors to mitigate risks while ensuring a solid return on their diverse portfolio of assets is now further enhanced with access to many of Russia’s companies.

“Furthermore, foreign firms can also be important stakeholders in the development of key municipal infrastructure programmes.”

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