29.07.2024, 21:53
The Bank of Russia has determined the procedure for payments on Eurobonds of the Development Bank of Belarus to investors of the Russian Federation
Source: OREANDA-NEWS
OREANDA-NEWS The Bank of Russia has determined the procedure for payments on Eurobonds of the Development Bank of the Republic of Belarus (BRDB) to Russian investors, the regulator said.
Payments will be made bypassing foreign institutions. To do this, NSD will compile a list of Eurobond holders and send it to the issuer. The Russian investor will need to send instructions to NSD through his depository and independently submit an application to the issuer for the fulfillment of obligations in Belarusian rubles or for the redemption of Eurobonds. Applications must also contain a waiver of claims against the issuer.
In order to receive payments on Eurobonds in Belarusian rubles, the holder of the paper must also confirm his friendly status and the fact of purchasing the security by May 28, 2024, the regulator notes.
After checking the documents, the issuer will be able to send funds to NSD for further transfer to investors who have applied for fulfillment of obligations in Belarusian rubles. Investors who have applied for a buyout will receive payments directly from the issuer. After receiving payments on Eurobonds, the securities will be debited from the owners' accounts and credited to the issuer's account opened with NSD.
The issue for $500 million maturing in May 2024 was placed by BRRB in 2019 at 6.75%. At the beginning of May this year, the issuer announced that it had reserved funds for the payment of coupons and repayment of Eurobonds, but could not fulfill its obligations to holders due to lack of access to the Western settlement and clearing system.
At the end of May, the Belarusian Ministry of Finance announced that holders of BRRB Eurobonds from friendly countries can receive payments on them in Belarusian rubles. The decree of the Government of Belarus allows holders of Eurobonds from friendly jurisdictions who purchased securities before the date of adoption of the document (this is May 28, 2024) to receive payments including the nominal value of the bonds and accumulated interest income, including through non-resident depositories, the Ministry of Finance explained.
The ministry noted that the procedure is similar to the procedure established for settlements on sovereign Eurobonds of Belarus. Settlements will be made in Belarusian rubles at the official exchange rate to the US dollar set by the National Bank of Belarus on the date of transfer of funds to the holder of Eurobonds.
To receive payments, holders of Eurobonds must undergo a verification procedure and ensure the transfer of securities to the issuer's account. In addition, the option of repurchasing Eurobonds by the issuer at a price of 30% of the nominal value of the security is available to all holders.
Payments will be made bypassing foreign institutions. To do this, NSD will compile a list of Eurobond holders and send it to the issuer. The Russian investor will need to send instructions to NSD through his depository and independently submit an application to the issuer for the fulfillment of obligations in Belarusian rubles or for the redemption of Eurobonds. Applications must also contain a waiver of claims against the issuer.
In order to receive payments on Eurobonds in Belarusian rubles, the holder of the paper must also confirm his friendly status and the fact of purchasing the security by May 28, 2024, the regulator notes.
After checking the documents, the issuer will be able to send funds to NSD for further transfer to investors who have applied for fulfillment of obligations in Belarusian rubles. Investors who have applied for a buyout will receive payments directly from the issuer. After receiving payments on Eurobonds, the securities will be debited from the owners' accounts and credited to the issuer's account opened with NSD.
The issue for $500 million maturing in May 2024 was placed by BRRB in 2019 at 6.75%. At the beginning of May this year, the issuer announced that it had reserved funds for the payment of coupons and repayment of Eurobonds, but could not fulfill its obligations to holders due to lack of access to the Western settlement and clearing system.
At the end of May, the Belarusian Ministry of Finance announced that holders of BRRB Eurobonds from friendly countries can receive payments on them in Belarusian rubles. The decree of the Government of Belarus allows holders of Eurobonds from friendly jurisdictions who purchased securities before the date of adoption of the document (this is May 28, 2024) to receive payments including the nominal value of the bonds and accumulated interest income, including through non-resident depositories, the Ministry of Finance explained.
The ministry noted that the procedure is similar to the procedure established for settlements on sovereign Eurobonds of Belarus. Settlements will be made in Belarusian rubles at the official exchange rate to the US dollar set by the National Bank of Belarus on the date of transfer of funds to the holder of Eurobonds.
To receive payments, holders of Eurobonds must undergo a verification procedure and ensure the transfer of securities to the issuer's account. In addition, the option of repurchasing Eurobonds by the issuer at a price of 30% of the nominal value of the security is available to all holders.
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