MKB informs about measures taken to continue to fulfill payment obligations on its Eurobonds
CREDIT BANK OF MOSCOW (“the Bank”, “MKB”) would like to inform its investors that, due to the restrictive measures introduced by the UK’s Office of Financial Sanctions Implementation (OFSI), the Bank’s ability to make payments under its Eurobonds through the usual channels remains limited. In line with the Bank’s transparent communication policy with investors, this is an update on the measures taken by MKB to resolve this issue.
As previously reported, on 08 April 2022, MKB applied to the OFSI for a Treasury License, which, if granted, will allow the Bank to service its Eurobond debt in accordance with its terms, as MKB is ready and willing to do. MKB remains in constant contact with the official representatives of the OFSI on the topic of our application. The Bank has been informed that, due to the increased number of applications, the OFSI review process is going beyond the standard four-week review period, which is a circumstance outside of MKB’s control. Once a Treasury License is granted by the OFSI, MKB will immediately arrange for the relevant payments.
In parallel, MKB is currently considering practical, lawful alternatives to facilitate coupon payment to all investors. For this matter, a separate press release has been published previously inviting bondholders to contact the Bank directly in order to find suitable and lawful alternative payment arrangements. Despite MKB’s best efforts, however, there can be no assurance that such arrangements can be found absent a Treasury License.
The Bank would like to emphasize that is the proper servicing of its outstanding Eurobond debt is of utmost importance for MKB. The Bank has sufficient funds for this purpose and will resume payments under the relevant Eurobonds as soon as legally possible.
We will keep updating the investors on further developments relating to our outstanding Eurobonds.