7 Oct 2022 15:00

PhosAgro secures agreement from investors for change in Eurobond payment scheme

MOSCOW. Oct 7 (Interfax) - PhosAgro has received approval from the holders of three of its dollar-denominated Eurobond issues to change the terms of these debt securities, including the use of an alternative payment mechanism, PhosAgro Bond Funding DAC, the issuer of the Eurobonds, said in a statement.

Proposals to be put to a vote were published by PhosAgro in late August. The company proposed approving language that would require it to make payments through the principal payment agent in accordance with the underlying issue documentation, except that for certain Eurobonds, payments would be made directly or through separate clearing systems or financial intermediaries to certain categories of investors. The company will be able to choose an alternative currency for payments in these individual cases at its sole discretion, and the amount of each payment in the alternative currency will be calculated as the equivalent of the dollar amount at the CBR exchange rate on the date of payment.

Furthermore, PhosAgro asked investors to increase the grace period for all payments to 14 calendar days.

The company succeeded in obtaining investor approval to change the terms of Eurobond servicing on its second attempt. The first time, PhosAgro failed to obtain the required number of votes, after which it adjusted the proposals and initiated a new vote.