Page 103 - bneIntelliNews monthly country report Russia May 2024

Russian depositories can be exchanged); securities in the accounts of Russian brokers in Euroclear are exchanged by intra-depository transfer.
Qiwi Finance notified of default on bonds. Kiwi Finance LLC, the issuer of bonds series 001Р-02 (₽8.36 billion), yesterday published a notice that bondholders have the right to demand their early repayment due to the expiration of the grace period (10 business days) to fulfill obligations for early redemption of the issue , i.e. about the occurrence of default. The offer, activated in connection with the downgrade of the rating, was executed on April 11 only partially (in relation to 1.7% of presented securities) due to lack of funds; Last week, the company announced another activation of the early buyout offer (this time on May 28) due to the withdrawal of its credit rating.
Bonds may be presented for redemption at any time until the issuer eliminates the violation (i.e., until the par value is paid on all securities presented for the first offer). The issuer is obliged to pay for the accelerated securities within 7 business days, which is unlikely to happen for the same reason that the first offer was fully executed. The liquidity problem of Qiwi JSC will probably be resolved only after the liquidation of Qiwi Bank is completed. According to Article 17.3.2 of the Federal Law “On the Securities Market”, securities submitted for early redemption must be cleared by the depository either until their redemption or until the demand is withdrawn.
103 RUSSIA Country Report May 2024 www.intellinews.com