Sovcombank suspends accrual of interest on perpetual Eurobonds, stops payments on others

MOSCOW. April 7 (Interfax) - Sovcombank, which has fallen under U.S. blocking sanctions, has suspended accrual of interest on two issues of perpetual Eurobonds, the lender said in a statement. Meanwhile, interest will accrue on Eurobonds maturing in 2025 and 2030, but payments on these have been stopped temporarily.

"Sanctions imposed by the United States and other countries and retaliatory restrictions imposed by the Russian Federation on Sovcombank prohibit use of blocked assets and limits access to international payment infrastructure to service the Eurobonds," the bank said.

For these reasons, until the sanctions against Sovcombank are lifted and the mechanisms for Sovcombank to dispose the blocked assets and to make payments on the loans become available, the bank continues to accrue, but temporarily suspends interest payments on the loans to finance coupon payments on Sovcom-30 and Sovcom-25 bonds, and is suspending coupon payments on perpetual subordinated Eurobonds.