Second update on Eurobond coupon payment due March 14, 2022
29 April 2022
U.S.$700,000,000 5.50 per cent. notes due 2024 (ISINs: XS1961080501; US29873VAB09) (the “Notes“) issued by the Issuer (EuroChem Finance Designated Activity Company) and unconditionally, irrevocably and fully guaranteed on a joint and several basis by Mineral and Chemical Company EuroChem, Joint Stock Company and EuroChem Group AG (the “Guarantors“)
EuroChem wishes to provide an update in relation to the interest payment due on 14 March 2022 in respect of the above Notes (“March 2022 Interest“).
On 4 March 2022, i.e. in advance of the interest payment date under the Notes falling on 14 March 2022, the bank account of the Issuer held with Citibank, N.A., London Branch, as principal paying agent (the “Principal Paying Agent“) was funded with the aggregate amount of U.S.$ 19,250,000, being the full amount required to be paid as March 2022 Interest in accordance with the transaction documents.
Such payment was made in discharge of the Issuer’s covenant to pay under clause 2.2 (Covenant to Pay) of the Trust Deed.
The payment of March 2022 Interest to Noteholders was suspended by the Principal Paying Agent pending completion of its internal compliance procedures. EuroChem Group AG (“EuroChem Group“) provided full cooperation and support to the Principal Paying Agent, including providing full information to assist in the Principal Paying Agent’s decision-making process.
EuroChem Group also engaged with the Financial Sanctions Unit of the Central Bank of Ireland and the Office of Financial Sanctions Implementation of HM Treasury (OFSI) to facilitate and expedite the processing of payment by addressing concerns raised by the Principal Paying Agent.
EuroChem Group has now received written confirmation from OFSI that it is not subject to UK sanctions. This follows similar declarations received from the Swiss State Secretariat for Economic Affairs (SECO) and the German Bundesbank, in respect of Swiss and German laws respectively.
Further to such declarations, and following completion of its own internal risk assessments, the Principal Paying Agent has now released funds to the custodians of the Noteholders thereby allowing the payment of the March 2022 Interest to be made.
EuroChem Group, including the Issuer and the Guarantors, is financially sound, continues to carry out its business operations as usual and has sufficient liquidity to meet its future payment obligations as they fall due.
In accordance with the terms of the Trust Deed, the Trustee has reviewed this notice and has authorised it to be stated that it has no objection to its content.
The Principal Paying Agent has also been provided with this press release notice in draft and does not dissent from its content. This announcement is released by the Issuer and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the Notes described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by the Directors of EuroChem Finance Designated Activity Company.