Investors to receive payments on Belarusian Eurobonds via Russian infrastructure
The Bank of Russia has developed a mechanism which will allow Russian investors to collect revenue from Eurobonds of the Republic of Belarus (ISIN XS1634369067 or US07737JAB98). Payments will be made in Belarusian rubles without participation of foreign institutions.
For this, the National Settlement Depository (NSD) will prepare a list of owners of redeemable Eurobonds and send it to the central depository of the Republic of Belarus. From his end, the investor will need to submit an application to this depository, which should also contain a waiver of claim against the issuer. The investor may do it directly of via a Russian depository. In addition, the bondholder should confirm his friendly status and the fact of ownership of the bond before 6 September 2022 and as of the date of its redemption.
This will allow the Ministry of Finance of the Republic of Belarus to send funds to the NSD for their further transfer to investors via a chain of Russian depositories. The redeemed Eurobonds will be written off from their owners’ accounts and credited to the account of the Ministry of Finance of the Republic of Belarus opened with the NSD.