Russia’s Sberbank pays in roubles on dollar-denominated Eurobonds
(Reuters) – Russian lender Sberbank on Tuesday mentioned it had made a coupon cost on dollar-denominated subordinated Eurobonds in roubles on the central financial institution alternate fee.
The flexibility of Russia to service its debt is in focus because the nation faces the prospect of sovereign default after Western capitals imposed sweeping sanctions within the wake of what Moscow calls a “particular operation” in Ukraine, which began on Feb. 24.
Sberbank, which serves about 100 million clients in Russia, is among the nation’s most vital monetary establishments.
“On account of blocking sanctions imposed on Sberbank by the USA and United Kingdom, the worldwide monetary infrastructure is stopping (Sberbank) from making funds to buyers as set out within the issuance documentation,” the financial institution mentioned in a press release.
Sberbank mentioned it has two subordinated Eurobond points excellent: a $2 billion concern due in October 2022 and a $1 billion concern due in Might 2023, with coupon funds due twice a yr.
“The financial institution confirms that it has adequate liquidity to satisfy all of its obligations and is doing its finest to service its debt,” it mentioned.
(Reporting by Reuters; Enhancing by David Goodman)
