Page 118 - RusRPTOct22

(NSD), without specifying the share of $400mn issue bought out or the terms of the deal. As reported by bne IntelliNews, the Russian government bail e-commerce and internet players VK (former Mail.ru), Yandex and Ozon Holdings with discounted loans worth RUB130bn ($2bn) to refinance their eurobonds. Analysts saw direct government support for private bond issuers as an unprecedented but understandable measure, as Yandex, VK and Ozon Holdings are of high systemic importance to the Russian economy.
It plans to continue the buyback of the bonds in Russia and encouraged existing holders at NSD to reach out. For the bonds abroad, the issues and procedure around the restructuring were being actively studied and discussed, taking into account foreign currency restrictions among other things.
Russia’s largest oil producer state-controlled Rosneft placed CNY15bn ($2.2bn) worth of debut 2-year Chinese yuan-denominated bonds at a 3.05% coupon rate. Notably, the placement was oversubscribed by 50% over the initially announced CNY10bn due to high demand. As followed by bne IntelliNews, Rosneft was expected to at least double the nascent Russian yuan-denominated bond market, following a total of CNY10bn worth of placements from United Company Rusal aluminium major and Polyus Gold gold miner. “Rosneft has tapped into a new, promising financial market to help manage its debt load. Chinese demand for its inaugural 2-year bond was strong, and the interest rate very attractive,” the analysts at BCS Global Markets commented. The 3.05% coupon paid by Rosneft is below the interest rates on the bonds of most Chinese oil and gas companies, the analysts note.
Ozon signed an early redemption agreement with the holders of 36% of its $750mn issue of convertible bonds, the company informed on September 24. The vote of all the holders on the settlement is scheduled for October 17. The holders of 36% of the issue signed a lock-up agreement until then. The early redemption terms are 83% of the par value in rubles and 65% in dollars, plus remuneration associated with the lock-up agreement (1.0625%) and interest accrued through 24 August. The company received a regulatory approval for the transfer abroad of the required funds.
118 RUSSIA Country Report October 2022 www.intellinews.com