Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Perpetual bonds
Stock Market

Perpetual bonds from the Russian Post: why do you need to issue bonds?

09.03.2021
2 min read

How eternal bonds will help Russian Post become better

Russian Post releases its own investment program, and to finance it, the company decided to release perpetual bonds. Perpetual bonds are to be issued by the end of this year. This model of fundraising was borrowed by Russian Post from RZD.
In June, Russian Post received 70 billion rubles from the government to overcome difficulties due to the consequences of the pandemic. However, the financing scheme and its features were not known. Now, more information appeared, and official representatives of the state company confirmed that the placement of eternal bonds is planned in the near future.
The allocated funds will be used to reform and modernize a number of operations. For example, cardinal transformation is required by trunk logistics, it is necessary to introduce new digital solutions, improve existing products for users. In addition, the financing will also be used for transport renewal.

Perpetual bonds

It is possible that another investor of the Russian Post will be the National Welfare Fund. Talks about funding from this source have been going on for a long time. Last time the issue was raised last autumn of last year. Then the head of the company appealed to the Prime Minister with a proposal to allocate from the fund about 40 billion rubles. This amount was reserved for Russian Railways, but since 2014 the corporation has not used these funds. Therefore, representatives of the Post considered it as a financing option. So far, the final decision on this money is unknown, but there is a good chance that they will go to reform the postal operator.
Perpetual bonds are a type of debt securities, which are provided without a fixed term for repayment of debt obligations. When they are purchased, it is possible to receive income for an unlimited period of time or sell the paper at any time. In case of issuance, the issuer shall have the right to set a condition for forced repayment after a certain period, for example in 10 or 15 years.
Perpetual bonds are the average option between preferred shares and standard long-term securities. Moreover, such bonds contain the characteristics of both. For example, as with shares, in this case it is not necessary to return the amount invested. And just like in bonds, in perpetual bonds the amount of income is stable and does not depend on the issuer’s profit.
Often, the issue of perpetual bonds is carried out by banks, which allows to attract these funds into the capital of both the first and second levels.
For the first time Perpetual Bonds placed the Bank of England in 1753, these papers are still sold on the London Stock Exchange, and allow you to get an income of 2.5% per annum. And these bonds can be redeemed at any time.

Tags: Stock Market
0
Previous Post The rejection of quarantine in Sweden led to the strengthening of the national currency Next Post Yandex will buy Tinkoff: what do we know about the deal?

You Might Also Like

Global financial services
Stock Market
World financial services and public literacy
12.07.2020
default of Chinese companies
Stock Market
Record defaults by Chinese companies recorded
19.08.2022
Russian Market
Stock Market
Investments in UIFs are increasing in the Russian market
04.11.2021
Tesla plant
Stock Market
Where will the first Tesla plant in Europe be located?
20.09.2020
Cryptocurrency market
Stock Market
Cryptocurrency market: the future of the segment in 2020
01.05.2020
atai life sciences
Stock Market
Startup ATAI Life Sciences plans an IPO
23.01.2022

Recent Posts

  • 1Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 2Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 3Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023
  • 4Michael Steinhardt
    Michael Steinhardt: the story of a prominent American investor
    25.01.2023
  • 5Cessna
    The Cessna aircraft company: how it all began
    24.01.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • What will happen to the U.S. market: analysis and forecasts from Wall Street experts

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023
Tom Ford brand
Estee Lauder made a deal to buy the fashion brand Tom Ford
27.01.2023
Golden Visa
The Golden Visa program has brought Portugal more than 6 billion euros during its existence
26.01.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • What will happen to the U.S. market: analysis and forecasts from Wall Street experts
  • Giorgio Armani: How the career of the Italian fashion designer began
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics