Rus News Journal

Situation round Novosibirsk bonds

At KODO there were opponents and competitors

Administration of the Novosibirsk region has spent on Friday repayment of municipal bonds (KODO) the fourth series. And it has been made taking into account a two-day delay of payment: on papers 100,44 % from face value have been paid. However and now it is impossible to name market KODO prospects good.

As already informed, by gathered in a trading floor of the Siberian interbank currency stock exchange to dealers last Wednesday it has been declared that repayment of regional short-term bonds for the sum 4,9 mlrd rbl. is postponed for two days. For the same term the secondary auctions by securities have been interrupted also. All it has caused the extremely negative reaction in the financial market of Novosibirsk. Some operators, making comments on a current situation, have declared, in particular, necessity of additional guarantees for regional loans. And carrying out of loans has appeared in doubt.
a bit later from official sources it became known that the delay has occurred to payments in connection with a delay of planned receipts in the local budget. Stating this version, the representative of regional administration has assured participants of the market that not only repayment will take place, but also the delay will be considered. Also it is necessary to give to the emitter the due: on Friday to owners of bonds have paid 100,44 % from face value of securities (the size of the penalty has been calculated proceeding from the rate of refinancing of the Central Bank).
And still even after that the future of the market of Novosibirsk bonds rather foggy. Also has put at all that, having detained payments, the administration has lost trust of investors. By estimations of local observers, in an area management there are serious opponents of market KODO as that.
all Speaks simply enough. In Novosibirsk administration recently more and more attention give to development of the bill market. On August, 27th the State committee on a securities market has given out the first permission to conducting bezdokumentaryh operations with bills to Novosibirsk Joint-Stock Company SOBVO ( the Siberian operator of the paperless bill reference ) Representing interests of association the Siberian agreement . Regional investors have responded about this significant event approximately so: the Company the unknown person, but its management enjoys the big trust at governor of the region Vitaly Muhi . And last week management of the finance and a tax policy of administration of the Novosibirsk region has already released the first bills in total amount 15 mlrd rbl.
However, it only the version, and, probably, KODO and bills will address in the market simultaneously. However it is necessary to recognise that release of bills looks more preferable both to local authorities, and for investors. On the one hand, under bills it is unessential to pay in ready cash. With another - in spite of the fact that, according to Vitaly Muhi`s order, the bond it is possible to use as payments in the budget, it does not give the big advantage to bonds. Use the similar right holders of bonds can only after repayment of the next series, instead of during its reference. Therefore a special difference than to pay, in general - that is not present. But bills can be bought in the market below face value that at payment with the budget incomparably it is more favourable.

DEPARTMENT of the FINANCE