OFZ-n (Russia)

are federal loan bonds for the population (Russia, 53003). Their par value is denominated in the currency of the Russian Federation and is equal to RUB 1,000. They entitle their owners to receive the par value at maturity and to earn coupon income. According to the Ministry of Finance, this type of OFZ was viewed not as a source of funding for the budget, but as an instrument promoting the financial literacy of the Russian population and developing their culture of investment. The first issue was placed on April 26, 2017. The purchase price of OFZ-n changes daily. Price details are published on the website of the Ministry of Finance.

The key differences between OFZ-n and other OFZs are as follows:
— Only individuals that are citizens of the Russian Federation are eligible to purchase OFZ-ns.
— They are purchased directly through agent banks (Sberbank, VTB, Promsvyazbank, and Post Bank) at a fixed price.
— There is no secondary market (securities are not traded on the stock exchange), i.e. it is impossible to sell those bonds to another individual or legal entity, except the agent bank through which the securities were purchased.
— OFZ-ns cannot be purchased via a personal investment account.