Bondholder representation

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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.