Sberbank to make coupon payments on two dollar-denominated Eurobond issues in rubles due to sanctions

MOSCOW. April 29 (Interfax) - Sberbank , subject to blocking sanctions, has decided to make coupon payments on two issues of subordinated dollar-denominated Eurobonds in rubles, the lender said in a statement.

Amid the blocking sanctions that the U.S. and UK imposed against Sberbank, the international financial infrastructure prevents the bank from making payments to investors in accordance with the bond issue documentation, Sberbank said.

Sberbank currently has two outstanding subordinated Eurobond issues, SBERRU 5.125% totaling $2 billion maturing October 2022, and SBERRU 5.25% totaling $1 billion maturing May 2023, both with semiannual coupons.

In compliance with the Russian president's Executive Order No. 95 on a Temporary Procedure for Meeting Obligations to Certain Foreign Creditors dated March 5, 2022, and fulfilling its obligations towards investors, Sberbank has decided to pay coupons on the aforementioned bonds in rubles by applying the exchange rate of the Central Bank of Russia as of the coupon payment date.

Coupon payments on the bonds deposited with the National Settlement Depository and it's Russian sub-depositaries will be wired to NSD for further transfer to bond owners.

Other bond investors are entitled to receive payments on bonds subject to provisions of applicable laws after contacting the bank.