Sanctions hinder proper fulfillment of obligations under SCF Eurobonds
On the status of the Eurobond coupon payment
PAO Sovcomflot (MOEX: FLOT) announces that the next coupon payment due on 16 June 16 related to the notes with maturity on 16 June 2023 (ISIN: XS1433454243) issued by SCF Capital Designated Activity Company, Ireland, guaranteed by PAO Sovcomflot, is hindered by the sanctions imposed on the issuer and the guarantor by the European Union on 15 March 2022 and United Kingdom on 24 March 2022. Proper discharge of obligations under the notes is currently technically impracticable due to the refusal of the paying agent to accept the payment and pay the coupon to holders of the notes.
The group of companies of PAO Sovcomflot is a responsible and trustworthy borrower on the Russian and international capital markets. PAO Sovcomflot confirms its commitment to fully discharge obligations under the notes in full and that it has the necessary financial resources to do so.
PAO Sovcomflot is currently considering modifying the terms of Notes by introducing alternative payment arrangements which would allow resume regular coupon payments in a timely manner.
PAO Sovcomflot, with the assistance of its advisors, is currently developing the most efficient solution to implement such measures which will be communicated to the holders of the notes as soon as possible.
We request the holders of the notes or persons exercising rights in relation to the notes to contact the company and provide the company with the necessary identification data, including information on the volume of controlled notes and the place of record. The holders of the notes which do not wish to disclose personal data may nominate their broker or depository to act on their behalf.
PAO Sovcomflot engaged the independent law firm Legal Services International as its legal counsel in connection with the above.
The holders of the notes or persons exercising rights in relation to the notes may contact PAO Sovcomflot, including for the purposes of provision of their identification details, either directly or to Legal Services International via e-mail as set out in this communication below.
Additional information:
At present, SCF Capital Designated Activity Company, Ireland, has two outstanding Eurobond issues for the total amount of USD 928 million with maturities on 16 June 2023 (ISIN: XS1433454243) and 26 April 2028 (ISIN: XS2325559396). Earlier, PAO Sovcomflot made an announcement on a similar situation with the coupon payment relating to the notes with maturity in 2028.
