Tinkoff Bank paid a coupon on subordinated Eurobonds for the first time since March
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Tinkoff Bank (MOEX: TCSG) for the first time since March 2023, paid a coupon on subordinated Eurobonds issued in 2017 in the amount of $300 million, with a payment date set for September 15, 2023. Only holders whose rights are taken into account in the Russian depository infrastructure received the payment. Payment was made in rubles, reported press service jar. The total amount of the payment is not disclosed.
Subordinated bonds are equity securities that only banks can issue. Such a security secures the holder’s right to receive from the issuer within the stipulated period its nominal value with interest. The maturity of a subordinated bond is at least five years or is unspecified; its owner cannot repay the paper early or receive interest. In the event of bank bankruptcy, claims on such bonds are satisfied last.
Tinkoff Bank reported that fulfilling obligations to pay coupons to Eurobond holders whose rights are taken into account in foreign infrastructure remains technically impossible due to sanctions. The bank is considering all possible options in the current situation for making payments to all categories of investors, the press service said.
On May 22, Russian President Vladimir Putin by decree obligated Russian companies to replace Eurobonds by 2024 in order to simplify the fulfillment of obligations under them for holders in the Russian Federation. Tinkoff Bank has not yet issued replacement securities.
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