OFZ-PD (Russia)

means fixed-income federal loan bonds. Like all federal loan bonds, they are auctioned by the Ministry of Finance or traded privately. This is the most common type of government security. They entitle their owners to receive the par value at maturity and to generate coupon income. The coupon rate is determined for the entire term of circulation; the par value is RUB 1,000, and the coupon period for new issues is six months (Russia, 26236).

The first fixed-income federal loan bonds were issued in early 1997 to restructure the Government debt to the Central Bank formed in 1992 to 1994, and had a coupon yield rate of 10% per annum (Russia, 25013). Starting from July 1997, the Ministry of Finance began to actively place fixed-income federal loan bonds at auctions and in the secondary market, gradually increasing the maturity.

From 2001, the issue of bonds has been regulated by Order No. 65n dated 16/8/2001 of the Ministry of Finance Concerning Approval of the Issue Terms and Circulation of Fixed-Income Federal Loan Bonds.