MinFin transfers 16.9 bln rubles to NSD to pay coupon on Russia 2027, Russia 2047 Eurobonds

MOSCOW. Dec 23 (Interfax) - The Russian Finance Ministry, in line with a June 22 presidential decree, has transferred 16.9 billion rubles, the equivalent of $234.8 million, to the National Settlement Depository (NSD) to make coupon payments on Russian sovereign Eurobonds maturing in 2027 and 2047, the Finance Ministry said.

The NSD has received the funds, and thus, obligations to service Russia's government securities are fulfilled in full, the ministry said.

The June 22 presidential decree approved a new procedure for servicing foreign sovereign debt. According to the new arrangement, all payments on Russian Eurobonds will be made in rubles.

The Finance Ministry transferred rubles to the NSD at the end of June to make coupon payments on three Russian Eurobond issues within the framework of this procedure, the dollar-denominated issues Russia 2027, Russia 2047, and Russia 2028. The ministry transferred payments to the NSD in rubles in the fall for dollar-denominated Eurobonds maturing in 2023, 2026, 2043, 2029, 2035, 2030, and 2042, as well as for three issues denominated in euros, Russia 2025, Russia 2027, and Russia 2032.

The Finance Ministry is making coupon payments on dollar-denominated issues Russia 2027 and Russia 2047 in rubles for the second time.

The Finance Ministry has divided holders of Eurobonds into three groups, depending on the infrastructure through which their ownership rights are recorded.

The first group includes investors who hold their bonds in depo accounts at the NSD or its Russian sub-depositories. Payments to these bondholders are made in the usual way and no additional actions are required from them.

The second group consists of investors whose bonds are held in a Russian depository that is itself a depositor of a senior foreign depository. Payments to them will be conveyed by the NSD through Russian depositories, bypassing foreign intermediaries, after the disclosure of information about the number of recorded bonds attributable to their depositors.

The third group consists of investors whose bonds are held directly in foreign depositories. Payments intended for them are transferred to a special "I" type ruble account at the NSD, where the funds are indexed according to the current market exchange rate of the currency in which the bonds are denominated until the actual payment to the bondholder. Investors in this group have to independently contact the NSD or an intermediary organization and provide documentary confirmation of their ownership rights to the Eurobonds.

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