Rietumu Leasing Has Issued Corporate Bonds
16-Jan-2019 / Products & Services The subsidiary of Rietumu Bank in Belarus – Rietumu Leasing, has issued bonds in USD, with a rate of return of 6% p.a.
The securities are issued with a maturity period of three years. Par value of the bond is USD 1000 and the total volume of the issue is USD 1 million.
The coupon yield payment takes place quarterly. The issuer also undertakes to buy the bonds at par from the holders, at their choice, once a year, having retained the accrued revenue (the annual offer).
“Rietumu Leasing has been successfully operating on the market of lease services in Belarus for over 15 years, practically from the time of its formation. Our company focuses on several directions, being a leader on the national market in some of them, for example, in the field of lease of freight vehicles and passenger cars for private individuals. The funds attracted in the course of issuing the bonds will primarily be used for the further expansion of our services in these niches,” said Director of Rietumu Leasing Andrey Orlov.
The active rate of the Rietumu Leasing bonds corresponds to the current rate of return of the securities issued by the state and largest private issuers of Belarus.
Specialists note that the rate of return of the issued bonds exceeds the rates for dollar deposits in the banks of Belarus (currently, from 0.8% to 3% p.a.), as well as their advantages such as the relatively short circulation period and the annual offer.
According to the laws of the Republic of Belarus, incomes from investment into bonds are not taxable, which contributes to the popularity of these financial instruments. Now, the market is experiencing a considerable upturn - its total volume is estimated at USD 1.2 billion.
In order to acquire the Rietumu Leasing bonds, a natural or legal person must have a securities account at any bank of Belarus and submit an application in this bank for buying the bonds. Having received the order, the bank will acquire the bonds and credit them on the respective securities account.
According to the data of the Belarusian Union of Lessors, starting from 2004, Rietumu Leasing has been stably among the Top 5 market lease companies of the country. Since 2012, this company has a 10% share in supplies of new semi-trailer trucks. The share of Rietumu Leasing on the car lease market for private individuals was 23% in 2017. The total volume of the company’s lease portfolio as of the issue day is USD 42.2 million.
Legal and consulting supporter of the issue of Rietumu Leasing bonds was the professional participant of the securities market of the Republic of Belarus JSC Aygenis.
The information on the issue of Rietumu Leasing bonds provided in this news article:
- is neither an offer nor invitation of the issuer and/or JSC Rietumu Banka, and/or third parties to conclude a deal on the acquisition of the bonds. Neither the information provided herein nor other information related to the bonds issue may be considered as a recommendation or an appeal of the issuer and/or JSC Rietumu Banka, and/or third parties to acquire the bonds;
- is not and will not be a public offer for the purpose of the Financial Instrument Market Law of the Republic of Latvia. We draw your attention to the fact that the issue of Rietumu Leasing bonds has not been registered and the information about it has not been published in accordance with the procedure prescribed by the Financial Instrument Market Law of the Republic of Latvia and regulatory enactments of the European Union;
- may not be used as an offer or as an instrument for considering an offer regarding the acquisition of bonds in the territory of the Republic of Latvia, member-states of the EU/EEA and the jurisdictions, where such an offer is not allowed, or by persons for whom an offer on the acquisition of bonds is unlawful;
- JSC Rietumu Banka, within the framework of the issue of Rietumu Leasing bonds, is not an issuer, agent or distributor of this issue, and does not have another status anticipated by the Financial Instrument Market Law of the Republic of Latvia;
- JSC Rietumu Banka bears no responsibility to third parties, who are considering the possibility of acquiring the bonds or have already acquired them.
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