Russia paid coupons on seven OFZ bond issues -finance ministry (updated)

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31/03/2022 10:53

(Adds details, background)
    March 31 (Reuters) - Russia's finance ministry has paid 50.2
billion roubles ($616 million) in coupons on seven OFZ treasury
bond issues, data on its website showed.
    The payments come as the finance ministry is due to make a
$447 million coupon payment on Thursday on a dollar Eurobond
that matures in 2030  RU011428878= .
    Investors are watching closely Moscow's servicing of its
debt after Western sanctions aimed at isolating Russia
economically.
    The sanctions have led European clearing houses Euroclear
and Clearstream to limit their business with Russian clients.
This has left foreign OFZ investors cut off from their rouble
bond holdings and local sovereign Eurobond holders, in turn,
from interest payments in hard currency. 
    The National Settlement Depository (NSD), a Russian national
clearing house, citing a central bank's order, said this month
that foreign OFZ bond holders are barred from receiving coupon
payments until further notice.  urn:newsml:reuters.com:*:nR4N2V5002
    NSD, which processes OFZ interest payments on behalf of the
finance ministry, did not immediately reply to a Reuters request
for information on which investors received the coupon payouts.
    OFZs are used by the government to finance some of its
budget needs. Before a growing standoff between Moscow and the
west made the bonds a risky asset, they were popular with
foreign investors thanks to their lucrative yields and Russia's
then-strong economic fundamentals. 
    The share of foreign investors among OFZ holders declined to
17.8% in February, the lowest since late 2012, from 19.1% a
month earlier. 
    This week, Russia has offered to repay in roubles part of a
$2 billion Eurobond that matures on April 4, to secure payments
for local investors who may not be able to receive dollars. 
    Investors declining the rouble offer would be paid in U.S.
dollars on April 4 when repayment is due, a source has said.
 urn:newsml:reuters.com:*:nL5N2VX335
    
  ($1 = 81.5000 roubles)

 (Reporting by Reuters)