MKB notifies about the current status of the 7.121% senior USD Notes due 25 June 2024 (ISIN - XS1964558339, US12504PAG54) and the 7.625% perpetual Eurobond (ISIN - XS2392969395, US12504PAK66) coupon payment

15.06.2022

Please be informed about the current status of the 7.121% senior USD Notes due 25 June 2024 (ISIN - XS1964558339, US12504PAG54) (CBOM-24) and 7.625% subordinated perpetual USD Notes (ISIN - XS2392969395, US12504PAK66) (CBOM perp) (together - “the Eurobonds” or the “Notes”) coupon payments.

Two coupon payments are scheduled under the Eurobonds as per the details below:  

ISIN	Coupon	Date of payment	Date of issue
XS1964558339 US12504PAG54	7.121%	27 June 2022	21 March 2019
XS2392969395 US12504PAK66	7.625%	05 July 2022	27 September 2021

The ability of CREDIT BANK OF MOSCOW (public joint-stock company) (“the Bank”, “MKB”) acting as the Borrower to make payments under the relevant loan agreements relating to the Eurobonds through the usual channels stipulated by the Eurobond documentation is still being limited by the assets freeze restrictions imposed on MKB by the UK’s Office of Financial Sanctions Implementation (OFSI). Although the Bank has applied to OFSI for a Treasury Licence with a view to permitting make such payments, there is no assurance that such Treasury Licence will be granted any time soon. Furthermore, starting from 14 June 2022 MKB has been cut-off from the worldwide system for interbank financial telecommunication SWIFT. Therefore, MKB is currently considering practical alternatives to facilitate the coupon payments to all investors holding its Eurobonds.

For this purpose, MKB would like to invite holders of the Notes (CBOM-24 (ISIN - XS1964558339, US12504PAG54) and CBOM perp (ISIN - XS2392969395, US12504PAK66)) to contact CREDIT BANK OF MOSCOW directly in order to discuss alternative payment arrangements by way of emailing to capital_markets@mkb.ru by 01 July 2022 for ISIN XS1964558339 and US12504PAG54, and by 06 July 2022 for ISIN  XS2392969395 and US12504PAK66 with subject “Coupon payment”:

• name of the holder of the Notes and, if held through an intermediary, name and details of the intermediary;
• contact details of the holder of the Notes;      
• in relation to CBOM-24 (ISIN - XS1964558339, US12504PAG54) - number of notes held as of 24 June 2022, in relation to CBOM perp (ISIN - XS2392969395, US12504PAK66_ - number of notes held as of 01 July 2022 for ISIN  XS2392969395 and US12504PAK66 and copies of the documents confirming relevant holdings;
• place of holding: NSD, Euroclear, Clearstream or DTC;
• jurisdiction of the holder and (if different) the jurisdiction of the applicable intermediary/ account in which the relevant notes are held.

Information so provided will be treated in the strictest confidence. Once in receipt of this information, we will contact you to discuss further steps. We would like to emphasize that MKB remains ready and willing to perform its payment obligations under the Notes and has sufficient funds for this purpose. Being a reliable and responsible borrower, MKB is making every possible effort to resolve the situation.

For any additional information, please contact Investor Relations and Capital Markets team: capital_markets@mkb.ru