SUEK unable to make coupon payment on 2026 Eurobonds on time: funds did not reach SPV company

MOSCOW. March 24 (Interfax) - SUEK has become another Russian borrower unable to make coupon payment on its Eurobonds in a timely fashion: the company is reporting that the payment on 2026 Eurobonds was not processed.

According to the company, the Eurobond issuer, SUEK Securities DAC, has not received funds from SUEK for coupon payment with the payment date of March 15. The issuer was informed that the correspondent bank did not make the appropriate payment, and SUEK is currently trying to resolve this problem and make the payment possible, the statement said.

The 2026 Eurobond is a debut for SUEK, placed in September of last year. The company was due to make the first coupon payment on this issue in March.

Previously, the main owner of SUEK was Andrei Melnichenko, but after his inclusion in the EU sanctions lists, he left the company's board of directors and ceased to be its beneficiary (the new ownership structure has not yet been disclosed).

Earlier on Wednesday, Severstal , whose principal owner Alexei Mordashov is also under EU sanctions, reported problems with coupon payments.

After a slight technical delay, coupon payments on Eurobonds were made by Evraz, whose major but not controlling shareholder Roman Abramovich was included in the EU and UK sanctions lists. The coupon payments of another indirectly affected company, PhosAgro (its CEO and one of the beneficiaries Andrei Guryev was included in the European list and left his post afterwards), reached investors on time on March 16, a market source told Interfax.