Fixed Income Securities

Are you looking for capital growth and stability for your savings?

Investing in the fixed income securities provides the opportunity to obtain regular interest payments, capital protection* and potential price gain.

Now Citibank offers access to a broad spectrum of fixed income securities both in local currency and in hard currency:

Benefits

  • Higher returns than on time deposits; growth & stability
  • Citibank's vast global presence and experience
  • Predictable cash flow
  • Range of maturities to match your needs
  • Ability to sell before maturity; liquidity**
  • No income tax for GKOs, OFZs, Municipal Bonds and Eurobonds if they are held until maturity

Treasury Bills (GKO's)

Short-term (up to one year) zero-coupon Ruble bonds issued by Russian Federation Ministry of Finance. GKO's are sold at a discount to its face value, and matures at its face value. Interest income is not subject to income tax.

Government Bonds (OFZ's)

Bonds issued by Russian Federation Ministry of Finance with maturities from 1 year to 30 years. OFZ's pay annual, semi-annual or quarterly coupons; coupon payments may be fixed or variable. Interest income is not subject to income tax.

Municipal Bonds

Bonds issued by regional authorities. Municipalities issue bonds to raise capital for their day-to-day activities and for specific projects that they might be undertaking (usually pertaining to development of local infrastructure such as roads, sewerage, hospitals etc). The largest issuer of municipal bonds is the city of Moscow. Citibank will be accepting customer orders for Moscow city municipal bonds only. Interest income is not subject to income tax.

Russian Federation Eurobonds

Bond that is denominated in US Dollars and Euro and sold to investors outside Russia. Eurobonds are usually issued by large underwriting groups from many countries. Eurobonds provide an important capital source for governments. There are eight issues of sovereign Russian Eurobonds in the market with maturities range from 2005 to 2030. Most issues are denominated in US dollars with only two issues denominated in euros. Citibank Russia accepts orders for Russian Federation Eurobonds in US Dollars.

*Only if securites kept until maturity. Please see risk disclosure agreement.

**Please see risk disclosure agreement.

Investment Products: Not government insured. Not a bank deposit. No bank guarantee. May lose value, including the possible loss of principal invested.

Past performance is not a guarantee of future performance. Although the information contained herein is believed to be reliable, AO Citibank makes no representation as to the accuracy or completeness of any information contained herein or provided by AO Citibank. Citibank is not acting as your advisor. Prior to entering into any proposed transaction, you should determine without reliance upon AO Citibank, the risks and consequences of the transaction with respect to instruments underlying a proposed transaction. This document and its contents are proprietary information and products of AO Citibank and may not be reproduced in whole or in part without AO Citibank's written consent.

Foreign securities that are not admitted for public placement and/or public circulation in Russia, and foreign financial instruments that are not deemed securities, may not be offered to the investment public at large or to non-qualified investors, and may only be purchased by qualified investors subject to applicable Russian law (Federal Law No. 39-FZ of April 22, 1996, «On the Securities Market»).