Update on Eurobond coupon payment due March 14, 2022
U.S.$700,000,000 5.50 per cent. notes due 2024 (ISINs: XS1961080501; US29873VAB09) (the “Notes“) issued by the Issuer (EuroChem Finance Designated Activity Company) and unconditionally, irrevocably and fully guaranteed on a joint and several basis by Mineral and Chemical Company EuroChem, Joint Stock Company and EuroChem Group AG (the “Guarantors“)
EuroChem wishes to provide an update in relation to the interest payment due on 14 March 2022 in respect of the above Notes (“March 2022 Interest“).
On 4 March 2022, i.e. in advance of the interest payment date under the Notes falling on 14 March 2022, the bank account of the Issuer (the “Issuer‘s Account“) held with Citibank, N.A., London Branch, as principal paying agent (the “Principal Paying Agent“) was funded with the aggregate amount of U.S.$ 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 Issuer understands that the payment of March 2022 Interest to Noteholders has been suspended by the Principal Paying Agent pending completion of the internal compliance procedures of the Principal Paying Agent (the “Suspension of Payment“). The EuroChem Group AG (“EuroChem Group“) has 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 has also engaged with the Financial Sanctions Unit of the Central Bank of Ireland and the Office of Financial Sanctions Implementation of HM Treasury to facilitate and expedite the processing of payment and has provided them with information in order to expedite the process so as to facilitate the payment of March 2022 Interest. In addition, EuroChem Group has received a confirmation from the Swiss State Secretariat for Economic Affairs (SECO) that neither it nor any of its subsidiaries is subject to sanctions in force in Switzerland. Copies of such correspondence with the relevant regulatory authorities may be provided upon request.
We therefore confirm that due to:
- the Issuer’s Account having been credited with the amount equivalent to the March 2022 Interest sufficiently in advance of the due date therefor;
- the balance of the Issuer’s Account being sufficient to process the payment of the March 2022 Interest to Noteholders; and
- the fact that, pursuant to the Paying Agency Agreement, the amount standing to credit on the Issuer’s Account shall be applied by the Principal Paying Agent towards payment of the March 2022 Interest to the Noteholders,
the Issuer has discharged its obligation to make payment in accordance with the terms of the Trust Deed and that the Suspension of Payment is purely of an administrative nature which is exclusively attributable to the events beyond the Issuer’s control. Accordingly, the Issuer does not consider that this constitutes a payment default falling within the ambit of Condition 9.1(a) (Non-payment) of the Notes.
The 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 payment obligations as they fall due. The EuroChem group is committed to applying its best efforts to ensure that the payment of the March 2022 Interest is processed as soon as possible. In that regard, the EuroChem group continues to interact with all parties involved and will keep the Trustee and all relevant parties updated on progress.
We will provide a further update as soon as possible and in the meantime all possible steps are being taken by the Issuer to ensure the release of the relevant funds held by the Principal Paying Agent, corresponding to the March 2022 Interest, to the Noteholders.
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. It has informed EuroChem that the Suspension of Payments is exclusively attributable to events beyond the Principal Paying Agent’s control.
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.
For more information, please visit www.eurochemgroup.com. Any media or analyst enquiries should be directed to the appropriate EuroChem Group contact, as listed below:
Head of Investor Relations
EuroChem Group AG