Page 145 - RusRPTApr23

currencies is under development, particularly as large Russian issuers have started entering the market with borrowings in Chinese yuan themselves," he said at the strategic session on ensuring financial sovereignty.
Tinkoff Bank notified TCS Finance D.A.C., the issuing entity, about its cancellation of an interest payment due on March 15 under a perpetual US dollar-denominated Eurobond issue, the issuer said.
Tinkoff initially floated the perpetual issue of subordinated Eurobonds worth $300mn in June 2017. Payments on the securities are made every three months and the current coupon rate stands at 11.002%.
The issuing documentation provides for the option of cancelling the payment, the bank said. "The issuing documentation gives the issuer the option of cancelling a coupon payment. In the current circumstances, we decided to cancel one payment so as to make an additional effort to factor in the interests of all investors, including those outside of Russia," the credit institution’s press service said.
In addition, Tinkoff has another issue of US dollar-denominated subordinated Eurobonds, which it placed in 2021. Payments under this issue are made every three months and the current rate is 6%, with the next payment due on March 20.
On February 25, the EU imposed sanctions on three Russian banks, including Tinkoff. Under the relevant restrictions, it is expected that these credit institutions’ assets within the EU will be frozen and transactions with them will be prohibited. Tinkoff stated, however, that the sanctions would not have a material impact on the bank’s operations as it has prepared for them.
The Finance Ministry of Russia has paid a RUB5.1bn, or $65.6mn coupon on a 2029 Eurobond in rubles, the ministry said in a statement on March 22.
145 RUSSIA Country Report Russia April 2023 www.intellinews.com