Although interest on the certificates will be negotiable, general manager Maarten Pronk said the documents will be closely pegged to the state treasury bill and interbank currency markets.
"They will be the guiding force behind our pricing on these instruments, taking into account the difference in credit level," he said.
Many banks and investment houses are reportedly searching for ways to allow overseas clients to tap the government's high-interest, lucrative bond and T-bill market -- foreign participation in which is severely restricted despite government promises to open the market.
However, Pronk said, ING's new instrument is unrelated to such efforts.
Available in rubles and the hard-currency equivalent, the bonds will provide a secure haven for funds while Russian and foreign companies go through the process of opening new bank accounts or transferring money to a new account, Pronk said.
The instruments can also be used as a guarantee or collateral for a loan, he said. The length and size of the bonds is negotiable, with maturity dates ranging from three days to a year.
ING Bank received approval to issue the bonds from the Finance Ministry, Pronk said, adding that he believes it to be the first such approval for a foreign bank. Some Russian banks are already using similar instruments, he said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.