The increased presence of bondholder representatives in Russia,
to protect investor interest, has made the market more
attractive.
On 1 July this year, it became obligatory to assign a
bondholders' representative (BR) for secured bonds to be listed
by public offering, or by private subscription, in favour of 500
people or more (excluding bonds with state or municipal guarantee)
and listed bonds (excluding securities for qualified
investors).
The presence of a BR is also obligatory for the inclusion of
unsecured bonds rated lower than BB-/Ba3 to quotation lists of the
second and third levels.
This change in legislation has boosted the protection of
bondholders' rights. In addition to receiving the nominal value
and interest, bondholders have other legal rights. For example, in
some cases bondholders have a right to early bond redemption,
pledge enforcement, or court access to adjudicate in the event of
issuer/guarantor bankruptcy.
