Putin signed a decree on the mandatory issuance of replacement bonds – Kommersant
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Russian President Vladimir Putin signed a decree on the mandatory placement of replacement bonds until January 1, 2024. Document published on the official portal of legal information.
According to the decree, Russian legal entities that have obligations related to Eurobonds are obliged to ensure the fulfillment of obligations to Eurobond holders, whose rights are taken into account by Russian depositories, by placing bonds before January 1, 2024, “the payment for which upon their placement is made in Eurobonds or in cash with purposeful use of attracted funds for the purchase of Eurobonds”.
Market participants who have placed bonds may place additional issues an unlimited number of times, but the volume of the issue must be similar to the volume of the issue of European securities, obligations on which are not fulfilled.
On February 8, the Ministry of Finance proposed to oblige issuers to issue replacement bonds. On February 10, at a meeting on the key rate, the head of the Central Bank of the Russian Federation Elvira Nabiullina supported initiative and stated that the substitution should be made mandatory to protect the Russian bondholders.
Read more about “replacement bonds” in the material “Kommersant FM” “Eurobonds are looking for ways to replace”.
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