The First Conversion of Market Bonds

May 05, 2026

Tags:#News

For the first time in the history of the Russian market, structured bonds were redeemed in favor of hundreds of investors through the delivery of shares in a Russian public company.

LECAP, together with FOCUS Management, successfully completed support for the transaction involving structured bonds linked to the ordinary shares of PAO PROMOMED: today, an issue with a volume of over RUB 1.6 billion was redeemed through the delivery of the company's ordinary shares to investors.

As a result of the redemption, more than 450 bondholders are becoming PROMOMED shareholders, the company's free float is increasing from 6.7% to 8.5%, and its short-term debt is being reduced by RUB 1.6 billion.

For us, as well as for the securities market, this is a landmark project: for the first time, a structured bond has served as a source of financing for a public company.

The transaction attracted the interest of affluent retail investors accustomed to investing in international markets.

The financial instrument went through the full cycle—from placement to the physical delivery of shares to a broad range of investors.

Despite the absence of a “cascade” securities redemption procedure, during the transaction we were able to thoroughly develop the infrastructure mechanism for the delivery of shares, as well as other important aspects: control over the transaction participants, the procedure for determining the price, and tax aspects (PROMOMED release).

The transaction was structured with particular attention to protecting shareholder value and is an effective alternative to an SPO, especially in the context of an illiquid equity market.

We are pleased that we were able to offer a product that enabled the company to obtain financing for R&D purposes aimed at developing innovative medicines and to expand its investor base, while giving investors a debt instrument that allows them to earn returns from the growth in shareholder value.