UPDATE 1-Russia Sent Dollar Eurobond Coupon Payments to NSD in Rubles

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MOSCOW, June 23 (Reuters) – Russia’s Finance Ministry said on Thursday it had fulfilled its obligations on two dollar-denominated Eurobond issues “in full” by sending 12.51 billion rubles (234. $5 million) in coupon payments to the National Settlement Depository (NDS).

The ministry said the payments were for Eurobonds maturing in 2027 and 2047.

“Thus, the service obligations of public securities of the Russian Federation have been fully fulfilled by the Ministry of Finance,” the ministry said in a statement.

President Vladimir Putin on Wednesday signed a decree establishing temporary procedures to honor Russia’s external debt obligations as the country teeters on the brink of default.

The ministry said it was moving to the procedure established by Putin’s decree, under which funds will be paid in rubles to the NSD before being distributed to bondholders in stages, depending on the amount of administrative penalties. applicable to each investor.

Eurobond holders whose ownership rights are contained in the Russian financial system will be paid in rubles, while the holdings of investors to whom funds cannot be transferred due to Moscow sanctions will be credited to an account special in rubles to the NSD.

“In order to ensure strict compliance with the obligations of the Eurobonds assumed by the Russian Federation, the funds in this account will be indexed at the current market exchange rate of the nominal currency until the time of actual settlements with the holders” , the ministry said.

Investors will need to open a ruble account to receive these funds, the ministry said. ($1 = 53.3500 rubles) (Reporting by Reuters; Editing by Kevin Liffey)


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