13 Mar 2023 15:33

SIBUR extends Eurobond redemption proposal: new resolution requires approval by govt commission

MOSCOW. March 13 (Interfax) - SIBUR has extended by nearly a month, through April 7, the validity of a redemption offer for three issues of dollar-denominated Eurobonds due to the necessity of approval by a governmental commission, which is envisaged in the presidential decree issued in the beginning of March.

The presidential decree "On additional temporary economic measures related to the circulation of securities" was signed on March 3. An official explanation of this document has yet to be published.

According to a message from Eurobonds issuer Sibur Securities DAC, the decree, in particular, envisages that redemption of Eurobonds must be approved by the Government Commission on Monitoring of Foreign Investment in the event that Eurobonds are owned through foreign clearing and settlement systems, if the redemption proposal is made by a Russian legal entity or its subsidiary company, as well as if the calculations for redemption are made using accounts in foreign financial institutions.

In light of these regulatory changes, namely because of the requirement to obtain permission from the government commission to execute the offer, the company is extending the offer until April 7, the statement said. The announcement of the repurchase results has accordingly been moved to April 11.

"SIBUR said on Feb. 20 that it was ready to redeem three dollar-denominated Eurobond issues maturing in 2023, 2024 and 2025. The offer had no limit on the volume of redemption.

The minimum redemption price for Eurobonds maturing in 2023 and 2024 was $550 per $1,000 of par value, and $500 per $1,000 par for Eurobonds maturing in 2025. The maximum redemption price for 2023 and 2024 Eurobonds was set at $700 per $1000, and for 2025 Eurobonds - $650 per $1000. The final price is to be determined by a modified Dutch auction procedure.

Initially, the redemption offer was valid through March 10, with the results of the redemption to be summarized on March 13.

According to the company itself, $162.2 million in 2023 Eurobonds, $368.7 million in 2024 Eurobonds and $427 million in 2025 Eurobonds are currently outstanding.