Sber issues first structured charitable bonds

Nov 23, 2021

SberCIB has partnered with SberTogether and SOS Children's Villages on a large-scale Mother's Day charity project. The bank has planned four issues of structured charitable bonds between October 1 and December 10, 2021, in the framework of which 0.5% of the funds raised will be donated to a charity fundraiser on the SberTogether platform.

Andrey Shemetov, senior vice president at Sberbank, head of SberCIB:

“Two structured bonds have already been successfully placed, thanks to which the fund was replenished with RUB 5 mn. The first bond order book was oversubscribed ahead of schedule, with the full volume of RUB 500 mn raised in just eight days. The total bond placement will be up to RUB 2 bn. We are setting an important new trend in the Russian market by offering investors a structured product with a charitable component. Given the increasing attention paid to the ESG agenda of business, society, and the government, it is important to many of our clients not just to place their own funds securely and with a profit, but to do so in an informed manner. Structured charitable bonds are a great way to help children and at the same time earn a high regular income on the equity market.”

The structured charitable bond was issued in rubles. Its underlying assets are a basket of stocks, including shares in Sberbank, OZON, Norilsk Nickel, MTS, and Polyus. The bonds are placed for three years with a guaranteed quarterly coupon of 3% (12% per annum). The investor bears the risk of losing part of the nominal value if the weakest security in the basket falls below 65% of its initial price. Accredited investors, individuals, and companies can purchase the security.

SberTogether provides an easy way to help any project on the platform. The service's main goal is to make charity simple and popular, building relationships between people and non-profit organizations at a fundamentally new level of empathy, engagement, and communication. To do a good deed, simply select a project close to your heart and make a donation in a matter of clicks.

SOS Children's Villages is a place where orphans and children deprived of parental care live in family homes together with their SOS mothers, brothers, and sisters, receiving everything they need for full development in an environment of love and respect. You can support the foundation on the SberTogether website.

SberCIB is a dedicated business segment in the bank’s corporate investment unit that works with the biggest customers. The line of business provides a wide range of financial solutions, from traditional lending to mezzanine and equity financing, as well as hedging of FX, interest rate, and commodity risks, operations in financial markets with access to international platforms, investment analytics, and transaction support.