Alfa-Bank was the first bank to announce the issuance of replacement bonds

Previously, Metalloinvest, Sovcomflot, LUKOIL, Borets, PhosAgro became issuers of these replacement securities, Kommersant recalls, but no one from the banks has yet reported the relevant actions.

The Bondholders Association (ABO) trusts that all Eurobond holders (analysts counted 17 issuers and 47 issues) will have time to adapt the documents to the decree.

VTB, Tinkoff-Bank, VK, Domodedovo, STLC, MKB, HKF-Bank have one way or another mentioned issuance plans, but there have been no specific decisions by the governing bodies of credit institutions yet.

Alfa-Bank explains that they have just started to prepare the replacement of the bonds and “it is still difficult to talk about the exact moment of the replacement, since the documentation of the issue is still subject to review and registration with the Bank of Russia.”

The bonds will be completely similar to Eurobonds, as stated in the requirements of the decree, and “the substitution will take place among investors who take into account the rights to the securities in Russian deposits.”

The lawyers explain that the issuance of replacement bonds is basically similar to the approval of the issue and the preparation of the prospectus for ordinary ruble bonds, but the procedure has even been simplified, meeting the needs of issuers.

Financial experts also noted that in the summer there was a rise in yields in the substitute bond market, and Alfa-Bank’s leadership in an effort to replace Eurobonds is not surprising, since the organization had “historically” the largest currency ratio. assets (more than 30%).