Russia's Finance Ministry transfers 13.4 bln rubles to NSD for coupon payments on 2028 Eurobonds
MOSCOW. June 26 (Interfax) - The Russian Finance Ministry has, in accordance with a presidential decree of June 22, transferred 13.4 billion rubles or the equivalent of $159.4 million to the National Settlement Depository to pay coupon yield on sovereign Eurobonds maturing in 2028, the ministry said.
NSD received the funds, so obligations to service government securities were honored in full, it said.
The decree of June 22, 2022 approved a new procedure for servicing sovereign debt, with all payments on Eurobonds made in rubles.
The Ministry of Finance initially divided Eurobond holders into three groups depending on the infrastructure through which ownership rights are taken into account.
The first group is comprised of investors who keep securities on depo accounts with NSD or its Russian sub-depositories, such holders receive payments as usual, and no additional actions are required from them.
The second group is made up of owners of Eurobonds whose securities are kept in a Russian depository, which is itself a depositor of a superior foreign depository. They bring funds to NSD through Russian depositories, bypassing foreign intermediaries, after disclosing information on the number of registered securities.
The third group is investors whose securities are kept directly in foreign depositories. The funds earmarked for them are credited to NSD to a special ruble account (an "I" type account). The funds on such an account will be indexed at the current market exchange rate of the nominal currency until the moment of actual settlement with the owners. Investors from this group will have to apply on their own to NSD or an intermediary organization and submit documentary evidence of ownership of the Eurobonds. At the same time, a foreign holder of Eurobonds has the right to convert the received ruble funds into foreign currency and withdraw it from Russia without any restrictions.
Finance Minister Anton Siluanov noted that foreign holders of Russian sovereign Eurobonds are in no hurry to collect the payments due to them. "While no one comes, they are afraid of sanctions interaction with the Ministry of Finance," the minister said in April.
