MOSCOW, Aug 29 Reuters Moscow Exchange, Russia39;s largest bourse, said it expected next month to bring the first issues of socalled replacement bonds that Russian companies need to replace unserviceable Eurobonds.

President Vladimir Putin signed a law in July that gives companies until the end of 2022 to issue bonds in a simplified procedure on the local market.

We hope that the first issues of replacement bonds will appear at the end of September, as there is not much time left before the end of the year, said Ekaterina Nagaeva, director of the bourse39;s listing department, in comments cleared for publication on Monday.

Proposed by the central bank, the replacement bonds would be a substitute for Eurobonds that Russian companies can no longer service due to sanctions connected to Moscow39;s actions in Ukraine.

Nagaeva said the parameters of a replacement bond issue must be the same as those of the Eurobonds they are replacing in terms of maturity, yield, coupon schedule and face value.

The bonds can be issued in roubles or in foreign currencies. One term of the law allows for the lender to demand repayment in roubles, rather than the currency of the bond39;s issue.

Other parameters surety, covenants, early repayment may differ depending on the circumstances, Nagaeva added. Keeping them or adjusting them is left to the discretion of the issuer and investor.

Investors should therefore pay attention to the parameters and structure of the replacement bond…