Alrosa pays 2027 Eurobond coupon in rubles to investors in Russian depositary infrastructure

MOSCOW. July 3 (Interfax) - Alrosa has paid a coupon on dollar-denominated Eurobonds maturing in 2027 in rubles to holders whose rights are recorded in Russian infrastructure, the diamond miner said.

The company transferred funds to the National Settlement Depository for onward transfer to Eurobond holders whose rights are recorded in Russian depository infrastructure in accordance with the registers of Eurobond holders.

The fulfilment of Eurobond coupon payment obligations as stipulated in the terms and conditions of the issuing documentation to holders whose rights are registered in foreign depository infrastructure, in particular through the Euroclear, Clearstream, and DTC settlement and clearing systems, remains technically impossible due to the sanctions imposed on the company, Alrosa said.

Alrosa said it was fully committed to its Eurobond payment obligations, and was taking all possible steps and measures to protect the interests of all its Eurobond holders in equal measure.

Alrosa has been subject to UK sanctions since March last year, and to U.S. blocking sanctions since April 2022. It has two issues of Eurobonds worth $500 million each with maturities in 2024 and 2027 outstanding. The next coupon payments are for the 2024 issue and are due in October.