ALROSA informs on the situation regarding the next coupon payment under Eurobond 2024

05 April, 2022 – Regarding the next coupon payment under Eurobond 2024.

PJSC “ALROSA” (the ‘Company’) informs on the situation regarding the next coupon payment, which is to be paid on 9 April 2022, under the US$500,000,000 4.65% Notes due 2024 (the “Notes”) issued by Alrosa Finance S.A. (Luxemburg) (the “Issuer”) and guaranteed by the Company (the “Guarantor”).

On 24th of March, 2022 the United Kingdom imposed sanctions on the Issuer and the Guarantor. This means that currently due implementation of the obligations under the Notes is technically impossible.

The Management of PJSC “ALROSA” confirms its commitments to fulfill its obligations under the Notes, and it takes steps to effect the payment in line with the Notes documentation:
· Following the Russian Presidential Decree of 5 March 2022, the Company applied to the Ministry of Finance of the Russian Federation and was granted a resolution to make international payments to foreign creditors in foreign currency;
· The Company asked its Principal Paying Agent and the Trustee (The Bank of New York Mellon, London Branch and BNY Mellon Corporate Trustee Services Limited respectively) to apply to the Office of Financial Sanctions Implementation (the “OFSI”) to issue a special license allowing the Issuer or the Guarantor to make the coupon payment under the Notes;
· The Company applied to “OFSI” to issue a special license allowing the Issuer or the Guarantor to make the coupon payment under the Notes. This applications requests that “OFSI” grants specific license authorizing the UK’ financial institutions and other parties, including the Principal Paying Agent, to process the normal onward payment towards the Noteholders.

We hereby confirm that the Issuer and the Guarantor are committed to fulfill the obligations under the Notes in full and in due time. The Company is totally financially sustainable and is in possession of all financial resources necessary to fulfill the next coupon payment in amount of US$11,625,000. As at the end of 2021 ALROSA had a 0.4x Net Debt/EBITDA, its cash and cash equivalents were US$0.9 bn. We confirm that the Company is taking all possible steps and measures in order to protect the interests of the Noteholders.

We will keep the Noteholders regularly informed about the progress of our communications with the Trustee, the Principal Paying Agent and the relevant regulatory filings and expect that the situation can be resolved to the benefit of the Noteholders as soon as possible. We would also encourage the Noteholders to apply to the “OFSI” in order to issue the license, which will allow them to receive the coupon payment under the Notes from the Principal Paying Agent.

This page was last updated on 13 April 2022 at 17.47