investors informed Belarus about a default on five Belarusian Eurobonds – Kommersant

Eight individuals and five companies reported in a letter to the Minister of Finance of Belarus Yuri Seliverstov about the default on five issues of Belarusian bonds – Belarus 2023, Belarus 2026, Belarus 2027, Belarus 2030 and Belarus 2031. The initiative group owns Eurobonds of these issues totaling $178 million, reports RBC with a link to a copy of the notice. Recognizing the bonds as default will oblige the Ministry of Finance to immediately make payments on them.

According to the publication, the total amount of securities of the above issues is about $3.25 billion. One of the participants in the group of investors told RBC that the authors of the letter will file a claim with the London International Court of Arbitration demanding to recover payments on Eurobonds from Belarus.

The publication, citing private investors, reports that only Citivic, a member of the Citibank group (which was an agent for Belarusian Eurobonds), or the ultimate holders of the securities can declare a default on Belarusian Eurobonds.

Problems with receiving payments on Belarusian Eurobonds began in the summer of 2022, after Citibank refused to be an agent for these securities. In October 2023, a group of private investors of 200 individuals and 30 organizations appealed to the Deputy Head of the Ministry of Economy of the Russian Federation Dmitry Volvach with a request to limit Belarus’ access to Russian government loans and the capital market due to non-payments on Eurobonds.

At the end of the year, Belarus began making payments to Russian investors on the Belarus 2023 issue, but only to those who purchased the securities before September 6, 2022, when the Citibank decision came into force. Payments were made in Belarusian rubles only if an account was opened in the republic.

January 15, 2023 Arbitration Court of the Kemerovo Region imposed arrest of 964.3 thousand Belarusian rubles (26.9 million rubles) held in an account in Belarusbank and owned by the Ministry of Finance of Belarus. This measure was taken to secure the claim of Kemerovo businessman Igor Prokudin, who owns a package of Belarusian Eurobonds (5.2 thousand pieces) with a coupon rate of 5.875%.

Erdni Kagaltynov