The Central Bank may extend the period for mandatory replacement of Eurobonds by six months
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The Bank of Russia is ready to shift the deadline for mandatory replacement of Eurobonds from January 1, 2024 to July 1. Deputy Chairman of the Central Bank Olga Polyakova reported this in a letter to the President of the Russian Union of Industrialists and Entrepreneurs (RSPP) Alexander Shokhin, Vedomosti reports. Mr. Shokhin confirmed the authenticity of the document to the newspaper, and a representative of the regulator reported that the issue of extending the deadline was being discussed.
The President of the RSPP addressed Mrs. Polyakova on November 9. He said that the business did not want to violate the replacement deadlines established by law and asked to extend them. To do this, in his opinion, it is possible to issue a separate decision of the government commission or make changes to the presidential decree. Mr. Shokhin notes the length of the replacement procedure. Most of the organizations included in the RUIE that are required to do this have already initiated the process, but they lack several months to complete it.
As of December 15, according to the Central Bank, 14 companies registered issues of replacement bonds. At least 30 companies are subject to mandatory replacement. The largest issuer of replacement bonds is Gazprom with 17 issues worth $9.1 billion. LUKOIL replaced four issues worth $3.6 billion. Papers of Tinkoff Bank, Sovcombank, Metalloinvest, Phosagro and MMK were also replaced. VTB plans to register three issues by the end of the year.
A number of large issuers, such as Russian Railways Polyus and ALROSA, have not yet filed applications to register replacement securities. It is not clear at what stage Domodedovo and Alfa Bank are at. MKB, Sibur and Chelyabinsk Pipe Rolling Plant do not report the registration status, although they previously approved the replacement. Severstal received permission not to replace Eurobonds. VEB.RF told Vedomosti that it expects a similar decision from the government commission.
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