The government allowed the Ministry of Finance to replace sovereign Eurobonds – Kommersant

Prime Minister of the Russian Federation Mikhail Mishustin signed a decree according to which the Ministry of Finance can replace Eurobonds with new securities. The mechanism involves the registration of securities with the same parameters in the jurisdiction of the Russian Federation; it is planned to launch in October-December.

“Security holders will be able to replace their Eurobonds with securities with identical parameters, but issued under Russian law in the Russian financial infrastructure without the participation of foreign institutions,” the statement says. comments Minister of Finance Anton Siluanov, published by the department.

Denis Mamonov, director of the State Debt Department at the Ministry of Finance, said earlier today that it is planned to issue bonds replacing sovereign Eurobonds in the fourth quarter. Such replacement, according to him, will take place in several stages. First of all, the Ministry of Finance intends to replace bonds with securities with the XS code (their global certificate is stored in foreign infrastructure).

“It is very important to understand that this is not a replacement of Eurobonds with OFZs. This is the replacement of Eurobonds with the same paper, with the same structure, pegged to a foreign currency, but with all settlements in rubles. The financial parameters of the paper will remain unchanged,” said Denis Mamonov (quoted from “Interfax”).

In a document signed on 4 September by the Prime Minister and published today on the portal of legal information, it is said that the replacement of securities will take place with the consent of their owner, the excess of the external borrowing program and the upper limit of the external public debt is allowed.

According to a comment by Anton Siluanov published by the Ministry of Finance, the implemented mechanism was developed in continuation of what was introduced decree President Vladimir Putin on June 22, 2022. At that time, the president allowed the opening of “I” type accounts in a Russian depository to make payments on Eurobonds issued in a foreign depository.