Rusnano agrees on debt restructuring with largest creditor Sovcombank

MOSCOW. Jan 19 (Interfax) - Rusnano state-owned company, whose announcement of a possible debt restructuring in November last year was an unpleasant surprise for the market and resulted in talk about the risks for the entire quasi-sovereign sector, has reached an agreement with its largest creditor, Sovcombank, Rusnano said in a press release.

"The documents were signed on December 30, 2021, and they provide for early repayment of a loan to the bank totaling 15 billion rubles, as well as a retrospective recalculation of the interest rate on the loan," Rusnano said in the press release.

The "successful completion" of 2021 ensures the possibility of fulfilling the agreements, with the company having exited half of the historical portfolio and thereby having formed the necessary level of liquidity, Rusnano noted. In 2022, the company "will continue to implement the chosen policy to reach agreements on restructuring with the remaining creditors," according to the press release.

Sovcombank is one of Rusnano's main creditors. Rusnano's total debt under Sovcombank lines of credit was 38 billion rubles as on June 30, 2021, according to Rusnano's quarterly report. As on June 30, 2021, Rusnano had debt on lines of credit with Bank Saint Petersburg totaling 16.5 billion rubles, with Promsvyazbank totaling 16 billion rubles, with AB Rossiya totaling 5 billion rubles, and with AK Bars Bank totaling 856 million rubles. Rusnano also previously had two lines of credit with Sberbank totaling 15 billion rubles, though it repaid them in December 2020.