MKB paid coupon on Eurobonds CBOM-25, CBOM'17-perp and CBOM-23 to noteholders in Russian depositories
01.09.2022
Please be informed about the status of the 4.7% senior USD Notes due 29 January 2025 (ISIN - XS2099763075, US12504PAH38) (CBOM-25), 8.875% subordinated perpetual USD Notes (ISIN - XS1601094755, US12504PAE07) (CBOM’17-perp) and 5.55% senior USD Notes due 14 February 2023 (ISIN - XS1759801720, US12504PAF71) (CBOM-23) (together - “the Eurobonds” or the “Notes”) coupon payments.
On September 1 2022, MKB (“the Bank”) transferred coupon payments on the Eurobonds to the National Settlement Depository (“the NSD”) in Russian rubles at the CBR exchange rate as of the date of payment in favor of noteholders whose rights in respect of the Eurobonds are recorded by Russian depositories with the participation of foreign depositories (Euroclear, Clearstream, DTC). The funds will be transferred to the holders of securities through the infrastructure of the NSD, bypassing foreign intermediaries.
The payment is made in accordance with the Executive Order dated March 5, 2022 No. 95 "On Temporary Procedures for Meeting Loan Obligations to Certain Foreign Creditors" and the Executive Order dated July 5, 2022 No. 430 " On the Repatriation by Residents Participating in Foreign Economic Activity of Foreign Currency and the Currency of the Russian Federation».
The imposed sanctions restrictions make technically impossible for MKB to process payments as it is stipulated in the Eurobonds’ issue documentation. Thereby MKB took the decision to separate payments in favor of noteholders in Russian and foreign infrastructure. Earlier MKB paid coupons on the above stated Eurobonds in favor of the noteholders whose rights in respect of the Eurobonds are recorded with the National Settlement Depository.
We also want to assure the investors, who have not received coupon payments due to the sanctions, previously imposed on MKB, - we are still looking for an opportunity to make the payments. Fulfillment of payment obligations under Eurobonds remains a priority for MKB.
For any additional information, please contact Investor Relations and Capital Markets team: capital_markets@mkb.ru.