27 Jun 2022 18:37

Nordgold seeking to appoint Russian company as Eurobond trustee

MOSCOW. June 27 (Interfax) - Legal Capital Investor Services LLC could obtain the functions of trustee for the Eurobonds of Nordgold , according to Celtic Resources Holdings DAC.

Celtic Resources Holdings DAC, the issuer of Nordgold's Eurobonds, said that the Russian gold mining company must replace Citibank in the role of trustee.

Foreign banks have been notifying Russian companies en masse since May that they would not be able to perform the functions of trustee owing to the European Union's restrictions introduced in April that prohibit the provision of trust services to Russian individuals and legal entities. Meantime, the termination of the powers of a trustee takes effect only if there is a new trustee for the Eurobonds.

The holders of at least 75% of the principal amount of Eurobonds must approve the change in the trustee, Celtic Resources reminded in its message.

According to information on the website of Legal Capital Investor Services, the company operates on the market as a representative of bondholders in corporate loans, structured and concession bonds, and securitization transactions, and participates on behalf of bondholders in bond restructuring processes.

Nordgold has been under blocking sanctions since June 2. After being included in the specially designated nationals and blocked persons (SDN) list, the company offered the owners of its Eurobonds to apply for redeeming debt securities. Nordgold has one issue of Eurobonds totaling $400 million and maturing in 2024.