May 26, 2022 – PJSC ALROSA (the Company, the Guarantor),
acting as the guarantor for Eurobond issues of Alrosa Finance S.A.
(the Issuer), announces that it has received notices from BNY Mellon
Corporate Trustee Services Limited (the Trustee) regarding two
Eurobond issues maturing in 2024 and 2027 (the Eurobonds).
BNY Mellon Corporate Trustee Services Limited notifies that starting
10 May 2022, it is unable to perform its trustee obligations for
the Eurobonds due to Council Regulation (EU) 2022/576 of 8 April
2022. As stated in the notice, the Trustee has not resigned and may
review its decision if any special licenses are issued.
According to the Eurobond issue documents, the
Trustee may terminate its powers as a trustee not earlier than three
months after the date of a relevant notice to the Issuer and the
Guarantor. However, such termination of powers will only take effect
provided there is another trustee for the Eurobonds.
The Issuer and the Guarantor are currently looking
into possible implications of the Trustee’s decision for the rights
of Eurobond holders and for payments under the Eurobonds given the
circumstances.
The Company confirms that it is ready to fully
meet its obligations under the Eurobonds and is prepared to answer
any questions that Eurobond holders may have about the current
situation.
For reference:
Alrosa Finance S.A. has two outstanding Note
issues for $500 m each with maturities in 2024 and 2027,
respectively.
Previously,
the Company circulated an update on the $11,625,000 coupon payment
under the Notes maturing in 2024. Due to the blocking
sanctions imposed on 7 April 2022 by the US government on
the Issuer and the Guarantor, as well as the UK’s sanctions of
24 March 2022, it has become technically impossible to properly
fulfil the obligations under the Notes. The Issuer and the Guarantor
are looking into ways to enable proper performance of the said
obligations.
The Company is totally financially sustainable and
is in possession of all financial resources necessary to fulfill the
coupon payments. As at the end of 2021 ALROSA had a 0.4x Net
Debt/EBITDA. The Company is taking all possible steps and measures in
order to protect the interests of the Noteholders.
IR team
E-mail: st@alrosa.ru
T: +7 495 620 92 50
Media team
E-mail: smi@alrosa.ru
T: +7 495 620 92
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