On the 6 of September 2024, the Ministry of Finance announced the possibility of bond substitution

26 September 2024

The Ministry of Finance of the Russian Federation hereby informs of the possibility for holders of government securities of the Russian Federation, the nominal value of which is specified in foreign currency (hereinafter — Eurobonds of the Russian Federation), to send expressions of will (offers) to replace Eurobonds of the Russian Federation in accordance with the Decree of the President of the Russian Federation dated August 8, 2024. No. 677 (hereinafter — the Decree), Order of the Government of the Russian Federation No. 2261-r dated August 22, 2024 and Order of the Ministry of Finance of the Russian Federation No. 388 dated September 5, 2024 (hereinafter — Order No. 388).

The holders of the Russian Federation Eurobonds are recognized as persons defined by such Decree.

All outstanding issues of Eurobonds of the Russian Federation shall be accepted for substitution in accordance with the conditions established by Order No. 388. The amount of coupon yield, periodicity of its payment, maturity and nominal value of the substituted Russian Federation Eurobonds will comply with similar conditions in respect of the substituted Russian Federation Eurobonds.

The substitution is carried out on the basis of the wills of the holders of Russian Federation Eurobonds in accordance with Order No. 388.

The Russian Federation Eurobonds of the persons who are the holders of Russian Federation Eurobonds as of the end of the trading day on September 12, 2024 are subject to substitution.

The replacement of the Russian Federation Eurobonds purchased between August 8, 2024 and September 12, 2024 (inclusive) shall be carried out subject to the specifics set forth in paragraphs 4 and 5 of the Decree.

Substitution of Russian Federation Eurobonds shall be carried out through receipt by the Ministry of Finance of the Russian Federation of substitutable Russian Federation Eurobonds from their holders and subsequent transfer (placement) by the Ministry of Finance of the Russian Federation of substitutable Russian Federation Eurobonds based on the respective wills of the holders (hereinafter referred to as Offer 1).

Offer 1 shall be submitted by the holders of Russian Federation Eurobonds to the Russian depository where such holders of Russian Federation Eurobonds have a depo account to record the rights to the substituted Russian Federation Eurobonds not later than 18:00 (Moscow time) on November 14, 2024 (the form and composition of the Offer 1 information will be published on the official website of the Ministry of Finance of Russia).

If the rights to the Russian Federation Eurobonds are accounted for on accounts in foreign depositories and if it is impossible to replace the Russian Federation Eurobonds by means of Offer 1, the replacement shall be carried out by means of transfer (assignment) by the holder of the replaced Russian Federation Eurobonds of all rights thereunder to the Ministry of Finance of Russia and subsequent transfer (placement) by the Ministry of Finance of Russia of the replacement Russian Federation Eurobonds on the basis of the respective wills of the holders (hereinafter referred to as Offer 2).

Offer 2 shall be submitted by the holders of Russian Federation Eurobonds to NCO JSC National Settlement Depository (hereinafter — the central depository) in hard copy with the attachment of supporting documents, the list of which is defined in Appendix No. 2 to Order No. 388, not later than 18:00 (Moscow time) on October 15, 2024 (the form and composition of information of Offer 2 and the applicable assignment will be published on the official website of the Ministry of Finance of Russia).

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