Sovcomflot has completed exchange of Eurobonds for replacement Russian bonds


PAO Sovcomflot (MOEX: FLOT) has completed a series of Russian bond placements that substituted the Eurobonds issued by the SCF Capital Designated Activity Company (Ireland).

On 9 December, PAO Sovcomflot placed an issue of ЗО-2023 (ISIN: RU000A105EN8) in the amount of USD 377 million to substitute Eurobonds maturing in 2023 (ISIN: XS1433454243). Earlier in October, the company placed an issue of ЗО-2028 (ISIN: RU000A105A87) in the amount of USD 318 million to substitute Eurobonds maturing in 2028 (ISIN: XS2325559396). The terms of the replacement bonds are identical to those of the existing Eurobonds. Payments under the replacement bonds will be made in Russian rubles at the exchange rate of the Bank of Russia on the date of the payment. The rating agency Expert RA has assigned new issues ‘ruAAA’ rating with a stable outlook.

The completed issues of replacement bonds enabled PAO Sovcomflot to resume fulfilling its obligations to all Eurobonds holders whose ownership records are maintained within the Russian infrastructure, taking into account the requirements of the Executive Order of the President of the Russian Federation No. 430 of 5 July 2022 ‘On repatriation by residents participating in foreign economic activity of foreign currency and Russian Federation currency.’

After the placement of Russian replacement bond issues, there are Eurobonds remaining in the circulation maturing in 2023 (ISIN: XS1433454243) in the amount of USD 121 million and Eurobonds maturing in 2028 (ISIN: XS2325559396) in the amount of USD 112 million.

Sanctions imposed on the company by the European Union and Great Britain continue to prevent it from properly fulfilling its obligations to Eurobond holders, whose ownership records are maintained within  the foreign infrastructure (the payment agent refuses to accept payments and make coupon payments to Eurobond holders).

PAO Sovcomflot confirms its readiness to fulfill its obligations under the Eurobonds in full to all holders and continues to take all available measures to resume coupon payments. The Company will inform bondholders and other interested parties of the status of work on the resumption of payments.

SCF Press Office