Nomos-Bank to offer promissory notes denominated in 10 more currencies

By Toni Weeks

San Diego, July 5 - Russia's Nomos-Bank Group said it will expand its investment business by issuing promissory notes denominated in 10 more currencies. Besides the usual denominations of rubles, dollars and euros, Nomos-Bank customers will be able to purchase promissory notes denominated in Japanese yen, South African rand, Norwegian krones, Swiss francs, Canadian dollars, Australian dollars, British pounds, New Zealand dollars, Singapore dollars and Chinese renminbi.

The new offerings will give the bank's customers an opportunity to diversify their investment portfolio by using stable and profitable instruments and, at the same time, hedge their currency risks.

"Nomos-Banks notes denominated in Australian dollars pay an interest of 7.5% per annum, which is much higher than U.S. dollar or euro note interest rate," senior vice president Roman Pivkov said in a press release. "At the same time, the Australian dollar is a strong and stable currency supported by a developed and capable economy."

Holders of the notes will be able to pay and redeem their instruments either in foreign currency or in Russian rubles at Central Bank's exchange rate.

Experts estimated that the current capacity of the Russian notes market amounts to a billion rubles, with 70% to 80% of debt denominated in rubles and the remainder in dollars and euros.

"Notes denominated in unusual currencies represent a new type of instrument that we are hoping to leverage the further growth of Nomos-Bank's investment business," Pivkov stated. "We expect to raise up to 500 million rubles through the issue of new notes."

Nomos Bank is a Moscow-based lender.

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