Media

Seligdar PJSC (MOEX: SELG) will collect orders for its 6.23-year GOLD02 series fixed rate amortised bonds on October 10, 2023. The coupon rate guidance is 5.50%. The planned issue size is up to 250 kg of gold. The settlement date for the first orders will be October 12, the placement will take place on the Moscow Exchange. Non-qualified investors need to pass test 6.

The par value of each GOLD02-series bond is one gramme of gold in monetary value. The monetary par value will be calculated in Russian roubles based on the reference price for gold set by the Bank of Russia. Accrued interest is calculated on the basis of coupon rate, number of days from the start of coupon period and the par value three days before the settlement date. The coupon payment period is 91 days.

The issue terms of the GOLD02 series bonds provide for comfortable amortisation schedule: 10% of par value on the dates of 11, 12, 15, and 16 coupon payments and 15%, on the dates of 22, 23, 24, and 25 coupon payments. Duration is 4.3 years.

The main advantages of gold bonds for private investors are as follows:

·         an opportunity to diversify investments in gold and protect money against inflation and devaluation,

·         higher liquidity compared to other alternatives of investments in gold,

·         no expenses associated with investments in physical gold and impersonal metal accounts,

·         higher return compared to other gold-linked investment instruments; additional 5.5% coupon income.

The bonds will be placed and traded on the Moscow Exchange. The lead managers are Gazprombank, Russian Agricultural Bank, and Sinara Invest Bank; joint lead manager is BCS CIB. Gazprombank acts as the placement agent.

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Seligdar is the first in Russia to issue gold bonds. The first successful issue of GOLD01 series bonds was on April 2023. The final placement volume exceeded 11 billion Russian roubles that was almost 4 times higher than its initially announced volume.

From the placement date, the GOLD01 series gold bonds investors earned total return of 18.9%.

The official web resource on ‘gold bonds’ is available at https://goldbond.seligdar.ru/ (in Russian).