To every home: why seven Russian regions will issue "people's" bonds
In 2026, seven Russian regions will start issuing "people's" bonds at once. These tools promise citizens a stable income without market risks, and the authorities receive funds for infrastructure and social projects. The money borrowed by the state from people will be used to build schools, hospitals, roads, and other social projects. Analysts are debating whether the new securities will pull funds from deposits or drown in budget deficits. Details can be found in the Izvestia article.
High stakes against banking giants
In 2026, seven regions of Russia plan to issue "people's" bonds, according to a statement from the Moscow Stock Exchange. These securities, intended exclusively for individuals, will allow the regions to raise funds for infrastructure, social facilities and landscaping. Their main advantage is the absence of market volatility. It will be possible to purchase the bonds through a special online platform after identity verification on the public services portal.
According to Izvestia, the Khabarovsk Territory, the Kamchatka Territory, the Magadan Region, the Chukotka Autonomous District, the Republic of Sakha (Yakutia), the Amur Region, and the Primorsky Territory may be included in the list. The priority remains with the Far East, but there is still a possibility of getting on the list, for example, the Ulyanovsk region.
The issue of "people's" bonds can have a positive impact on the debt sustainability of the subjects of the Federation, as it allows to diversify sources of borrowing and reduce dependence on large institutional creditors, says ASI expert, ex-senator Olga Epifanova.
—Attracting public funds entails a more predictable and stable debt structure, and also stimulates increased financial transparency and confidence in regional fiscal policy," the expert points out.
In her opinion, these factors together can help strengthen the regions' credit ratings and maintain a balanced debt burden.
The regional authorities are counting on a yield of at least deposits in order to attract "physicists" through simple online registration on the platform with verification through Gosuslugi. This opens the door to millions, but experts see the nuances of competition.
— The regions will offer yields on "people's" bonds at a level not lower than the yield on deposits and even higher, as this savings tool remains not as popular as bank deposits, — says Vladislav Bukharsky, Associate Director for Sovereign and Regional Ratings at Expert RA.
Dmitry Panov from Delovaya Rossiya highlights the key drivers of future success, where the issuer's reliability is combined with the convenience of not having brokers.
"This instrument has three important components for a successful placement: an acceptable yield of 16-17% per annum, comparable to the profitability of bank deposits, high reliability of the issuer, as well as the possibility of acquisition without using a brokerage account," he notes.
Izvestia sent inquiries to the Ministry of Regional Development, the Ministry of Finance, the press service of the Moscow Stock Exchange and the office of Deputy Prime Minister Yuri Trutnev.
According to the gosportal's information, "We explain.Russian Federation", people's bonds are government securities for individuals that are issued by an issuer: a region or a city. When buying bonds, people lend money to the issuer for a specified period and receive a percentage in the form of coupon income.
Release parameters: modest but affordable
The volumes will not affect the debt market significantly, the terms will remain short, and the entry will be minimal, 1,000 rubles. This will complement, rather than replace, loans and classic bonds, while maintaining balance in portfolios.
Vladislav Bukharsky predicts a realistic framework based on past practices applied in the Yamalo-Nenets Autonomous District or the Ulyanovsk region.
— Do not expect large-scale issues of "people's" bonds. Most likely, for a particular region, the volume of output will not exceed 1 billion rubles. The entry threshold for these bonds is traditionally low: the paper price is 1,000 rubles, and this is the minimum purchase amount," he says.
Analyst Vladimir Vasilenko from Renaissance Capital Investment Company adds that the advantage in income of such securities is shown only with significant amounts, otherwise deposits benefit from tax preferences.
— "People's" bonds give an advantage in yield of 1.5–2% per annum over deposits, but only if the investor invests at least 1 million rubles. With a smaller amount of capital, the deposit is in no way inferior to bonds due to tax benefits," Vasilenko notes.
Projects worth billions: from buses to master plans
The funds will formally cover the deficit, but in reality they will go to infrastructure, housing and communal services, transport and social facilities — from electric buses in the capitals to local initiatives on the periphery.
Dmitry Panov sees a wide range where bonds will finance energy and sports.
"The range of applications of funds raised under national bond loans can be quite wide — from the renovation of housing and communal services to the construction of large infrastructure facilities in the fields of transport, energy, healthcare, sports and education," he says.
Vladislav Bukharsky gives examples from practice, emphasizing flexibility without rigid binding.
— For example, the Amur Region issued bonds to finance the region's master plans (various projects), funds from Moscow's "people's" bonds were used to upgrade the bus fleet, including replacing diesel buses with electric buses. The funds raised through such bonds in the Ulyanovsk region were used to develop and support local initiatives in the region," the expert notes.
Risks and prospects: demand is at its peak
So far, the portfolio of Financial Services has grown 2.4 times, the average check is up to 640 thousand, Moscow and St. Petersburg are pulling demand. But high rates are more expensive than budget loans of 3%, which, according to experts, will complicate the life of the regions.
Vladimir Vasilenko notes the growth of the customer base, but warns of limited demand at current rates.
— In 2025, the portfolio of people's bonds in Financial Services increased 2.4 times over the year, the number of clients — 2.3 times, and customer funds — 3.4 times. Basically, residents of Moscow and the Moscow region, St. Petersburg, Vologda and Sverdlovsk regions, as well as the Krasnodar Territory, buy bonds as an alternative to conventional bank deposits," he says.
Vladislav Bukharsky sees no serious investment risks compared to traditional loans, while Dmitry Panov expects a boom based on last year's experience.
"Given the positive experience of the regions in issuing people's bonds this year, there is every reason to assume that they will be in high demand in the near future," says Panov.
"The risks of inefficient spending or corrupt schemes are no higher than with traditional borrowing," adds Bukharsky.
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