The Bank of Russia proposes to create conditions for the use of convertible bonds at the pre-IPO stage. This is reported on the regulator's website.
Due to this, according to the Central Bank, the issuer will be able to attract financing on more favorable terms before acquiring public status.
The regulator also intends to consider the possibility of switching from a fixed to a variable conversion rate. Such changes will allow companies to better adapt the tool to their needs and the market situation.
The market for convertible bonds, debt securities that can be exchanged for shares of the issuer, has not yet been formed in the Russian Federation, the report emphasizes.
The first set of amendments to the rules for issuing convertible bonds was introduced in 2018-2019. However, such issues were rare.
