Bondholder representation
Pursuant to Federal Law No. 39-FZ "On the Securities Market" dated 22 April 1996, an issuer may appoint a bondholders' representative. The Law specifies cases where such appointment is mandatory, including:
- secured bond offerings where the number of non-qualified investors exceeds 150 (public offering) or exceeds holders with pre-emptive rights (private placement);
- listing of secured bonds on organised trading platforms unless backed by state or municipal guarantees, independent guarantees, or sureties from state development institutions.
A representative of bondholders acts on behalf of bondholders before the issuer, collateral providers, third parties, Russian federal/regional authorities (e.g. courts), and local self-government bodies.
The bondholders' representative participates in the following types of transactions:
- Corporate bond issuances.
- Concession and structured bond offerings.
- Bond issues in asset securitisation.
- Restructuring of outstanding bond issues.
In October 2016, FBK Consulting LLC, part of the FBK Group, was included in the Central Bank of Russia's Official List of authorised bondholders' representatives.
FBK performs the following functions as part of its bondholder representation services:
- Facilitating dialogue with institutional and retail investors.
- Financial transaction monitoring.
- Legal transaction oversight.
- Collateral preservation control.
- Exercising pledgee rights.
- Conducting legal proceedings.
- Making technical amendments to offering documentation.
- Supporting investor rights in corporate actions.
- Protecting bondholders' rights and interests.
Upon service completion, the issuer receives:
- Adjustments to bond issuance resolutions and prospectuses.
- Detailed service reports.
- Processed bondholder enquiries.
Our advantages
Expert Team
FBK Consultants have significant experience in assisting with transactions for the issuance of all existing types of secured and unsecured bonds in the Russian and international financial markets.
Long-term Collaboration
FBK’s purpose is to establish long-term partnerships, enabling service delivery tailored to your business nuances.
Expertise
FBK consultants have accumulated substantial experience in almost all sectors and industries, are well-versed in trends and challenges within specific industries and apply a flexible approach to service delivery while ensuring full compliance with legal requirements.
Key Persons
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