Belarusian replacement bonds gain access to trading on Moscow Exchange - Belarus' Finance Ministry

MINSK. Jan 21 (Interfax) - Belarusian government bonds replacing Eurobonds have gained access to trading on the Moscow Exchange and the Belarusian Currency and Stock Exchange, Belarus' Finance Ministry said.

"Replacement government bonds of the Republic of Belarus of issue No. 331 (ISIN BYM000001818) are currently available for trading on the Belarusian Currency and Stock Exchange (BCSE) and Moscow Exchange (MOEX) platforms," the Finance Ministry said.

Investors may conduct transactions with the securities in accordance with current legislation and trading rules, the ministry said.

There were previous reports that Belarus' Finance Ministry on December 27 conducted the debut replacement of Eurobonds for the Belarus-2027 issue maturing on June 29, 2027, for government bonds of issue No. 331. The replacement totaled $240.4 million, and the bonds were transferred to the accounting infrastructure of the National Settlement Depository (NSD) of the Russian Federation to the accounts of Eurobond holders. The replacement was for 1,760 bondholders who passed verification in the Belarusian central securities depository.

On June 29, 2017, Belarus placed 10-year Eurobonds for $600 million with a coupon rate of 7.625% per annum and maturity on June 29, 2027. Citigroup and Raiffeisen Bank International AG organized the issue.

In early July last year, Belarus' Finance Ministry clarified the procedure for fulfilling obligations on Eurobonds, increasing the number of its options. Particularly, this envisages the possibility to replace Eurobonds with an outstanding circulation period, namely Belarus-2026, Belarus-2027, Belarus-2030, and Belarus-2031, with Belarusian domestic government bonds through a non-resident depository. Replacement for other issues of Eurobonds is expected to take place in February 2025.

At the end of December 2023, Belarus switched to paying Eurobonds to investors from Russia through the NSD. Payments have been rendered only on Belarus-2023 Eurobonds since then and only to holders who purchased the securities before September 6, 2022. Belarus' Finance Ministry redeemed the issue in February last year. The principal amount of the debt is $800 million, though the Russian owners have not been able to receive the payments due, about which they have repeatedly complained.

In December, the Belarusian government expanded the circle of holders of the Belarus-2023 Eurobonds, for which payments are rendered in the national currency. Bondholders who purchased securities up to and including December 23, 2024, also now have the right to receive payments on Belarus-2023 Eurobonds through a non-resident depository.