24 Dec 2024 14:28

Belarus expands circle of those holding Belarus-2023 Eurobonds on which payments are rendered

MINSK. Dec 24 (Interfax) - The Belarusian government has expanded the circle of those holding Belarus-2023 Eurobonds on which payments are rendered in the national currency, the country's Finance Ministry said.

"The joint resolution of the Council of Ministers and the National Bank, dated December 23, 2024, amends the current procedure to fulfill obligations in Belarusian rubles regarding Eurobonds. The adopted clarifications stipulate that bondholders who purchased securities before the date of the said resolution up to and including December 23, 2024, now have the right to receive payments on Belarus -2023 Eurobonds through a non-resident depository," the ministry said.

However, the mandatory condition of transferring Eurobonds to the issuer's account remains in effect.

"Changes have been made based on accumulated experience and market assessment. The Finance Ministry will continue working on organizing payments to holders of Belarusian Eurobonds in light of the adopted changes," it said.

As previously reported, Belarus switched to making payments on Eurobonds to Russian investors through the National Settlement Depository at the end of December 2023. Since then, payments have only been made for Belarus-2023 Eurobonds and only to holders who purchased the securities before September 6, 2022. This issue was redeemed by the Finance Ministry in February 2023 with a principal debt amount of $800 million. However, Russian holders were unable to receive their due payments, which they repeatedly complained about.

In early July, the Finance Ministry clarified the procedure for fulfilling obligations on Eurobonds, aiming to expand the existing options for fulfilling these obligations. In particular, payments in Belarusian rubles on Eurobonds through a non-resident depository have been made since then in favor of holders who acquired the securities before the redemption date specified in the issuance documentation. For the Belarus-2023 issue, the redemption date is February 28, 2023. The mandatory condition for payments remains the transfer of Eurobonds to the issuer's account.

Allowing the substitution of Eurobonds with unexpired terms (Belarus-2026, Belarus-2027, Belarus-2030 and Belarus-2031) with Belarusian domestic government bonds through a non-resident depository is also envisioned.