Eurobond coupon payment announcement
19 July 2022 – PJSC ALROSA announces the launch of the identification procedure for Eurobond holders whose rights are recorded by Russian depositories.
As a result of the sanctions imposed on PJSC ALROSA (the "Company") and Alrosa Finance S.A., the issuer of two Note issues of Eurobonds in the amount of USD 500,000,000 each, maturing in 2024 and 2027, for which the Company acts as the guarantor, as well as other sanctions imposed by the United States of America, the European Union, and the United Kingdom in relation to the Russian Federation and to Russian individuals, it has proven technically impossible for the Company to fulfil its regular coupon payment obligations on 9 April 2022 and 25 June 2022 under each of the Note issues.
In accordance with the Russian Federation Presidential Decree No. 430 "On the repatriation by residents participating in foreign economic activity of foreign currency and Russian Federation currency" dated 5 July 2022 ("the Decree"), the Company is required to fulfil its obligations to Eurobond holders whose rights are recorded by Russian depositories by transferring funds in accordance with the procedure determined by the Board of Directors of the Central Bank of the Russian Federation, or by transferring to those holders the bonds placed.
The Company hereby announces that it plans, as part of the execution of the Decree, to send a request to JSC NSD (National Settlement Depository) to identify holders of ALROSA Eurobonds, the rights to which are recorded in the accounts of JSC NSD and Russian depositories. Based on the registers of Eurobond holders received, the Company plans to instruct JSC NSD to arrange the transfer of funds for the Eurobond coupon payments which came due for payment 9 April 2022 and 25 April 2022 in Russian Federation roubles, in accordance with the procedure stipulated in the Bank of Russia official clarification No.6-OR dated 20 May 2022.
The Company calls upon depositors at Russian depositories, who are owners of ALROSA Eurobonds with maturities in 2024 (ISIN: XS1843441731 / US02109TAD46) and in 2027 (ISIN: XS2010030919 / US02109TAE29) to contact their depository to ensure the sending of the necessary information as requested by JSC NSD.
The fulfilment of Eurobond coupon payment obligations to holders whose rights are recorded in foreign depository infrastructures (in particular through the Euroclear, Clearstream, and DTC settlement and clearing systems) remains technically impossible due to the sanctions imposed on the Company.
The Company notes that the Noteholders whose rights are recorded in foreign depository infrastructures may wish to consider to apply to the regulatory authorities of the United States (OFAC) and the United Kingdom (OFSI) to request licenses that would allow the Company and the principal paying agent (The Bank of New York Mellon, London Branch) to fulfil their obligations to make the coupon payments.
The Company fully committed to its Eurobond payment obligations, is taking all possible steps and measures to protect the interests of Noteholders, and is prepared to fulfil its obligations in accordance with the terms of the Note issue documentation to all Noteholders equally following the lifting of regulatory restrictions.