1 Sep 2023 16:37

SIBUR announces new redemption of three issues of dollar-denominated Eurobonds

MOSCOW. Sept 1 (Interfax) - SIBUR is conducting a new redemption of its Eurobonds from holders of debt securities maturing in 2023, 2024 and 2025, according to a statement from the issuing company Sibur Securities DAC.

The minimum redemption price for Eurobonds maturing in 2023 and 2024 is $550 per $1000 of face value, for Eurobonds maturing in 2025 - $500 per $1000 of face value. The maximum redemption price for 2023 and 2024 Eurobonds is set at $700 per $1000 of face value, for 2025 bonds - $650 per $1000 of face value. The final price will be determined through a modified Dutch auction procedure.

The message indicates that the offer has no limit in terms of volume of redemption. Its results should be summarized on September 15 (or around this date), with settlements on deals to be held from September 18 to October 2.

Amid the existing restrictions, some holders of Eurobonds may experience difficulties in gaining access to payments on Eurobonds or repatriation of these funds, and the redemption offer gives investors the opportunity to withdraw from these investments, receiving remuneration, being especially relevant for holders of Eurobonds maturing on October 5, 2023, the statement indicates. .

SIBUR has already redeemed Eurobonds this year. The terms of the offer published at the end of February were similar to those of the current offer in terms of price. The offer was extended several times due to the need for the company to obtain approval from the government commission on monitoring foreign investments in Russia. In early May, SIBUR announced that the redemption authorization had been received, and the Eurobond redemption price was set at the maximum possible level for the offer - - $700 per $1000 of face value for 2023 and 2024 Eurobonds, and $650 per $1000 of face value for 2025 Eurobonds.

The company did not disclose the volume of Eurobonds that were purchased under the previous offering. Before the previous offering, according to the company's own data, there were 2023 Eurobonds totaling $162.2 million, 2024 Eurobonds totaling $368.7 million and 2025 Eurobonds totaling $427 million in circulation.

SIBUR has been making separate payments on Eurobonds to holders whose rights are accounted for by Russian and foreign depositories since July last year. In May, the company reported that some of the previous payments on Eurobonds had not reached holders, and it decided not to make payments to holders of Eurobonds whose rights are accounted for by foreign depositories through a payment agent, and will make payments to this category of investors to special ruble accounts.