Medvedev instructed to accelerate the programme OFZ for the population to 100 billion rubles
The Chairman of the government Dmitry Medvedev instructed the Finance Ministry to accelerate the programme of issue of Federal loan bonds (OFZ) for the population in the current year to 100 billion rubles.
Program sales OFZ for the population was launched in Russia in the spring of 2017.
“The first issue was sold out very quickly. In the end, people acquired OFZ in the amount of 30 billion rubles,” – said Medvedev at the meeting of the Russian investment forum in Sochi.
The Prime Minister said that instructed the Ministry of Finance to study the issue of increasing emissions in 2018 to 100 billion rubles. “I believe the right to extend this practice to regional level, the subjects were interested in the issue of its securities for physical persons”, – said Medvedev.
The Ministry of Finance in late April last year started selling OFZ bonds to the public, debuting with a three-year issue with a volume of 15 billion rubles. The yield of new bonds, according to the plan of the Ministry should be higher than on Bank deposits and on government bonds that are already in circulation.
The yield also depends on the period of ownership of the securities — the coupon size will increase as you get closer to the date of redemption. OFZ bonds are placed through the office of the Bank “VTB 24” and Sberbank SBER. The offering price of the securities when the tool was run from 26 to 28 April 2017 up to 100% of par, which corresponded to a yield of 9.02-of 9.03% per annum.
From 6 June the Ministry of Finance proposed an additional issue of OFZ for the population to 15 billion rubles following the sale of all securities of the debut issue. An additional issue has parameters similar to the ones established for the main issue, with the exception of the start date of the bonds placement. In addition, the Ministry started placing a new issue of OFZs for the population of 15 billion rubles is 13 September 2017. OFZ bonds are maturing in September 2020. End date of the placement of these bonds is 14 March 2018.