27 Apr 2022 14:58

MMK begins searching for options to make coupon payments on 2024 Eurobonds

MOSCOW. April 27 (Interfax) - Magnitogorsk Iron & Steel Works (MMK) , which is due to make a coupon payment in June on dollar-denominated Eurobonds maturing in 2024, has begun looking for options to transfer funds to investors.

Given the existing uncertainty regarding the transfer and receipt of loan interest and coupon income due to regulatory restrictions in various jurisdictions, particularly, cross-border payments, MMK is considering legal options to facilitate the coupon payment on June 13, 2022, the company said.

MMK encourages bondholders to contact MMK as soon as possible to discuss and find an acceptable solution, and requests information such as the type of securities held (Regulation S or Rule 144A), their number, as well as the jurisdiction of the holder and the account where the Eurobonds are held.

MMK has the sufficient liquidity cushion to meet its obligations on due dates, including the coupon payment, and will carry out the available actions to fulfill these obligations, the company said.

As of the end of February, Viktor Rashnikov's Altair was MMK's main shareholder (79.76%). Rashnikov was subject to EU sanctions in March.