Business breakfast on ADRs, GDRs and HDRs with Bank of New York Mellon

Friday, May, 22, 2015 CFA Association Russia held its business breakfast dedicated to the peculiarities of emission and circulation of different types of depositary receipts. Usage of ADRs, GDRs and HDRs in the interest of investors and business owners became a topic for discussion as well. The event took place at Tverbul restaurant, Tveskoy Blvd., Moscow.

‘Despite significant difficulties with the investment climate in Russia depositary receipts remain an important instrument of capital attraction, especially for large international projects’, said Vladimir Tutkevich, CFA Association Russia Executive Director in his foreword.

Yury Mandzhiev, VP at The Bank of New York Mellon made a brief excursion into the history of depositary receipts and gave an overview of the current state of the depository receipts market. ‘Over 3,5K companies from 76 countries are owned and traded in the form of DRs nowadays’, he noticed.

Significant part of the workshop was dedicated to specific details of emission and circulation of depository receipts, including the difference between Russian and global practices. The speaker, as an issuing bank representative, paid attention to the aspects important for financial institutions traders and investors. Implications of tax law changes on depository receipts of Russian issuers were discussed as well.

Following the discussion Neil Withers, CFA, CFA Association Russia President introduced depositary receipts from the issuer’s point of view. Sharing his own experience he pointed out that good relations with investors were a point of great importance for DR issue success.

Russian issuers’ ADRs and GDRs are traded in New York and London nowadays providing more than 30 local сompanies with access to the international capital market. The Bank of New York Mellon was the first to launch an ADR program in Russia with Lukoil in 1994.