On Sovereign Eurobonds
Belarusian sovereign eurobonds (the "Eurobonds") as currently on the market:
- Belarus-2031 XS2120882183 US07737JAD54 6,378%;
- Belarus -2030 XS1760804184 US07737JAC71 6,2%;
- Belarus -2027 XS1634369224 US07737JAA16 7,625%;
- Belarus -2026 XS2120091991 US07737JAE38 5,875%;
- Belarus -2023 XS1634369067 US07737JAB98 6,875%.
In August 2022, after a number of attempts to pay interest to the Eurobnds holders and being limited in doing so due to the Western sanctions, the Ministry of Finance paid the interest to 2026 and 2031 Eurobond holders in Belarusian roubles.
The recent resolution of the Council of Ministers and the National Bank of the Republic of Belarus dated September 26, 2022 No. 643/20 “On Certain Transactions with the Sovereign Securities” further determines the options for fulfilling the issuer's obligations (with the consent and at the choice of the securities holders):
- replacing Eurobonds with domestic government bonds, denominated in US dollars with comparable interest rates and maturity,
IMPORTANT: payment of interest on domestic government bonds is made in Belarusian rubles at the official exchange rate of the National Bank of Belarus, to the account in a Belarusian bank. The holder is to open a “depo” account with the Central Securities Depository of the Republic of Belarus and a settlement account in Belarusian rubles with a Belarusian bank. To open accounts, it is necessary to provide a number of documents including those identifying the holders and confirming their right to Eurobonds, legalized (apostilled) with a notarized translation into Russian (Belarusian) language, when necessary.
- early redemption of Eurobonds, carried out at a price of 30% of the face value followed by cancellation,
IMPORTANT: practical possibility of receiving incoming transfer in US dollars from JSC “ASB Belarusbank” should be clarified with the bondholder’s bank. As far as we know such transfers are currently extremely limited and available to individual banks of the Russian Federation and China. If the transfer in US dollars is technically impossible, the Eurobonds holder should open an account in a Belarusian bank to receive payments in Belarusian rubles.
- receiving the coupon payments (including previously transferred to the paying agent and not received by the Bondholders) and redemption payments of Eurobonds in Belarusian rubles.
IMPORTANT: Eurobond holders are to open accounts in any Belarusian bank. To open accounts, it is necessary to provide documents identifying the holder and confirming their right to Eurobonds, legalized (apostilled) with a notarized translation into Russian (Belarusian) language, when necessary.
If you need additional information and/or comments on transactions with sovereign eurobonds, we will be happy to advise you.
Please contact partner Tatiana Emelianova (tatiana.emelianova@vmp.by).
