Polyus says offshore 2024 bond holders yet to receive coupon payments, has duplicated them

MOSCOW. Sept 14 (Interfax) - The offshore holders of 2024 Eurobonds issued by Polyus have still not received coupon payments due to them - the paying agent has not yet confirmed the funds have been transferred, Russia's No.1 gold miner said in a statement.

Polyus said that on July 29, 2022, the issuer, Polyus Finance plc, fulfilled its obligation and transferred the funds in dollars to The Bank of New York Mellon , London Branch acting as a paying agent in respect of the notes. The issuer expected the paying agent to make coupon payments to offshore noteholders - the holders of the notes, the rights to which are recorded in foreign depositories - in accordance with the paying agency agreement. "Despite instructions and active attempts of the issuer to reach out to the paying agent, the issuer has not received confirmation that the paying agent has transferred the coupon payments to the offshore noteholders as of the date of this announcement," the company said.

The issuer informed i2 Capital Trust Corporation Ltd acting as a trustee under the notes that the paying agent had not completed the coupon payments to the offshore noteholders. Under the terms of the notes the issuer was instructed to transfer the funds to the trustee account for the subsequent transfer of such funds to the clearing systems for onward payment to the offshore noteholders. "The issuer acted in the best interest of its bondholders and effectively duplicated the coupon payments to the offshore noteholders, completing the transfer of funds to the trustee on time and fulfilling its obligations under the terms of the notes. The trustee is seeking written confirmation from the relevant clearing systems that such funds can be transferred to them from the trustee," Polyus said.

"The issuer now expects that the funds would be transferred to the clearing systems for onward payment to the holders of the notes either by the paying agent or by the trustee," it said.

Polyus said that as a reminder, JSC Polyus Krasnoyarsk, the guarantor, transferred the funds in rubles to National Settlement Depository as coupon payments for the subsequent transfer of such funds to the holders of the notes, the rights to which are recorded in Russian depositories, on July 19, in line with the requirements of the Russian regulations presently in force and terms of notes, now in effect.

"The issuer confirms its commitment in respect to all outstanding Eurobonds and will continue its efforts to facilitate the coupon payment to its bondholders. The issuer will provide further updates in case the Issuer receives the confirmation from the paying agent," Polyus said.