Russia: Replacement of the Sovereign Russian Eurobonds
In the context of the Presidential Decree No. 677 as amended, and the Federal Law No 416-FZ issued by the Russian Federation, Clearstream Banking1 informs clients about the following impacts on Eurobond notes issued by the Russian Federation deposited either in the International market or U.S. domestic market.
As a reminder, such legislation enables the exchange of outstanding Russian sovereign Eurobonds by issuing new Russian domestic securities in agreement with the holders. The Eurobond replacement process has been taking place outside of the clearing systems. As a result, the (I)CSDs are not included in the informational exchange. In order to protect the integrity of the issue, Clearstream Banking has suspended all internal and Bridge settlement. Accordingly, this announcement supersedes Announcement A22132.
To ensure full reconciliation of the exchanged Eurobonds, all clients holding such securities are under continuous obligation to check with their underlying holders (if the information is not available to clients) and inform Clearstream Banking without any delay of any repurchases and/or exchanges that have occurred throughout the lifetime of the security. For this reason, Clearstream Banking has announced ad hoc corporate actions events that have been set up for the sole purpose of informing which security and which position(s) has been impacted under the Eurobond replacement procedure described above. The events have been announced on securities which Clearstream believes may be impacted. It does not necessarily mean that the security has been or will be subject to the exchange. Should there be a security on which there is no event currently announced while the client is aware of a position that has been exchanged, clients fall under the same reporting obligation irrespective of the event announcement. In addition to a response under the announced event, clients are still under obligation to provide an MT599 for the purpose of income payments as requested in Announcement A22152.
Clients holding and engaging in transactions involving Russia-related Eurobonds must be aware and bear all the risks of holding such securities, including not receiving any of the full entitlement in relation to their position due to the debt replacement process described above, but also due to eventual payments made outside of clearing systems directly to certain holders and end investors or persons claiming to be holders and end investors. Even though these are external factors on which Clearstream Banking has no influence nor visibility, Clearstream Banking will continue to apply controls, multiple checks, and validation steps to preserve the integrity of payments if and when received.
Clearstream Banking reminds clients to comply and ensure compliance at all times by any of clients’ underlying holders, with any applicable sanctions, including but not limited to those of the European Union, the United Nations, the United States, or the United Kingdom.
Please see the list of impacted securities below:
XS0088543193 |
XS0971721963 |
XS0971721450 |
XS0114288789 |
XS0767473852 |
US78307ADH32 |
US78307ADG58 |
US78307ADE01 |
US78307ACZ49 |
US78307AAE38 |
Further information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.