25-Year Wait Ends: Bank of Russia Streamlines Convertible Bond Issuance

The Bank of Russia has proposed new measures to simplify the issuance of convertible bonds—hybrid debt instruments that can be transformed into equity shares under specific conditions. This regulatory move aims to remove long-standing technical and legal barriers that have limited the use of these securities in the Russian market. The initiative comes as the market experiences a shift in liquidity. Market experts have noted a record outflow from traditional bonds, prompting a search for alternative capital attraction formats. For issuing companies, convertible bonds provide a mechanism to plan capital structure and define exact timelines for the transition from debt to equity participation. Evgeny Kogan, investment banker and founder of Bitkogan: "Convertible bonds are a beneficial instrument for both issuers and investors. For companies, they provide a clear understanding of the terms and timing of conversion. For investors, it is a protected asset with limited downside risk but no limit on growth."