Russia tenders for 7½% bonds, funding from up to $4 billion new bonds

New York, March 7 – The Russian Federation is tendering for its 7½% bonds due 2030 via an intermediated exchange to be carried out by VTB Capital plc.

Funding for the offer will come from the sale of up to $4 billion of new bonds and the maximum to be paid in the tender will be set equal to the gross proceeds from the new deal.

The purchase price for the existing bonds will be fixed using a modified Dutch auction process, capped at a maximum of $539 per $1,000 principal amount. The purchase price may also not exceed the market price as calculated under provisions of the Russian tax code.

There is $14,614,636,156 of the 7½% bonds outstanding, or $6,941,952,174.10 on an unamortized basis.

The tender will end at 11 a.m. ET on March 15.

Settlement is planned for March 21.

Completion of the offer is subject to conditions including a new issuance condition.

VTB Capital, which will buy the bonds on behalf of the Russian Federation, is also dealer manager for the tender (+44 20 3334 8029 or liability.management@vtbcapital.com). Lucid Issuer Services Ltd. (+44 20 7704 0880 or russia@lucid-is.com) is tender agent.

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