The terms "structured bond" and "program of structured bonds" were introduced into the Federal Law No. 39-FZ "On the Securities Market" of 22 April 1996 by Federal Law No. 75-FZ of 18 April 2018 "On Amendments to the Federal Law 'On the Securities Market' Regulating Structured Bonds" (entered into force on 16 October 2018).
When carrying out corporate actions, payments for which depend on the occurrence or non-occurrence of circumstances, the issuer of the structured bonds sends to NSD a Notice of Corporate Action indicating the amount of the payment and enclosing the form provided for in Appendix No. 8 to the Rules of Interaction with NSD when Exchanging Corporate Information, Conducting Corporate Actions and Other Operations.
Where a structured bond provides for redemption in multiple forms, the issuer shall submit to NSD a Notice of Corporate Action, retaining only one of the following redemption options as active:
CASH – Cash
SECU – Securities
CASE – Cash and Securities
OTHR – Other
The issuer may also specify whether clients are required to submit instructions, along with the deadline date and time for receipt of such instructions.
In the field “Additional Information on Corporate Action,” the issuer shall state the grounds that determined the chosen form of redemption.
If no payment is made upon redemption or early redemption of a structured bond, or if payment is made in non-cash form, the issuer shall submit Form Z4 – Notice of Bond Redemption, specifying in the Remarks field: the number of bonds being redeemed; the grounds for termination of obligations, including details of the events whose occurrence or non-occurrence resulted in no payment (with reference to the relevant clause in the issuance documents).
Where necessary, the issuer shall provide supporting documents confirming the occurrence or non-occurrence of the events affecting payment upon redemption, or documents confirming the fulfilment of redemption obligations.
To ensure the payment of a redemption amount less than the nominal value of a structured bond, the issuer shall submit Form Z1.1 – Notice of Acceptance of Bond Issue and Its Servicing, specifying: the date and amount of payment per bond (in percentages and/or in the payment currency); in the Notes field, details of the events whose occurrence or non-occurrence resulted in a partial redemption payment, with reference to the relevant clause in the issuance documents.
Where the payment of income on structured bonds does not occur, or occurs only partially, due to the occurrence or non-occurrence of certain events, and the issuer has not previously submitted a Notice of Corporate Action (with information on the events affecting the payment amount), the issuer shall submit Form Z1.1 – Notice of Acceptance of Bond Issue and Its Servicing, specifying in the Notes field: details of the events whose occurrence or non-occurrence prevented the income payment, with reference to the relevant clause in the issuance documents.