Russia says fully paid $102m coupon on 2035 Eurobond


Pedestrians walk past the Russian Finance Ministry building in Moscow, Russia March 30, 2021. REUTERS/Maxim Shemetov

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March 29 (Reuters) – Russia’s Finance Ministry said on Tuesday it had fully paid a coupon on the country’s Eurobond due in 2035, its third payment since unprecedented Western sanctions challenged the ability of Moscow to service the debt in foreign currency.

The ministry said it had funneled $102 million for the coupon payment on the Eurobond to Russia’s National Settlement Depository (NSD).

“The Russian Ministry of Finance has fully performed its obligations to service sovereign securities of the Russian Federation in accordance with the Eurobond prospectus,” the ministry said, without specifying whether the payment was sent to Euroclear or subsequently processed to holders. foreign Eurobonds.

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However, a source close to the situation said the transaction was handled by correspondent bank JPMorgan Chase (JPM.N).

According to the Eurobond prospectus, settlement with investors takes place through the NSD and Euroclear, and “if, for reasons beyond its control, the Russian Federation is unable to make payments… in US dollars”, payment can be made in Euros, Pounds Sterling, Swiss Francs or Russian Rubles.

Neither Euroclear nor NSD immediately responded to a request for comment.

In mid-March, Russia paid $117 million in interest due on two sovereign Eurobonds and last week another $66 million coupon due on another issue. Excluding Monday’s coupon, Russia still has $4.4 billion in foreign debt repayments due for the rest of the year. Some corporate borrowers have also had to deal with late payments. Read more

Russia’s next payment will be on March 31, when a payment of $447 million will fall due. Its biggest payment of the year — and its first full principal repayment, of $2 billion — is due April 4.

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Reuters reporting; Editing by Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

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