Sberbank completes placement of first structured bond

Jan 22, 2020
  • Given first placement’s success, next deals to close one of these weeks; in 2020 such deals to become regular
  • Instrument is new for Russia and provides higher yield pegged to evolution of various basic assets


January 22, 2020, Moscow — Sberbank has completed the placement of the first structured bond issued by a Sberbank Group company. This is a new instrument that gives investors more opportunities. The transaction was carried out in a closed pilot mode in order to test a technology that cuts security issuance costs and terms. The launch was a success, with next deals following suit in the coming weeks. Over the course of 2020 such deals are set to become regular.

A structured bond featuring no capital protection is a new tool that provides higher yield given the underlying asset, which can be any market asset or indicator, evolves according to plan. The deal, which we were the second to carry out in Russia, proved the advantages of our placement technology, which enables us to market new products as soon as practically possible and complies with the best international practices. Shortly, we’re set to replace a substantial proportion of the structured notes that Western issuers offer to customers – the total annual volume of which in Russia is about USD10 bn – with our own structured products.