Sibur offers type ‘D’ pay option to holders of 2.95% notes due 2025

By William Gullotti

Buffalo, N.Y., Jan. 12 – Sibur Securities DAC is offering a type “D” payment option to eligible holders of its $500 million 2.95% notes due 2025 (ISINs: XS2199713384, US825795AC13), according to an announcement on Friday.

The announcement and instruction solicitation specifically pertains to the interest payment that came due Jan. 8 for holders outside of the Russian depositary and settlement infrastructure. Sibur indicated belief that, in the current regulatory framework, the type “D” payment represents the most reliable tool for these noteholders to receive payments that will fully comply with Russian law as well as the terms of the notes. It further stated that, if the current geopolitical and regulatory environment as well as financial infrastructure were to deteriorate quickly, there could be no way to assure that noteholders would be able to receive the relevant amounts other than this method in the future.

Sibur confirmed that it has sufficient liquidity to meet its payment obligations as they fall due, including eligible noteholders outside of Russia, and mentioned that Gazprombank JSC is one such Russian bank maintaining a type “D” account for such payments.

The company further detailed the payment process, stating that type “D” payments would be made in rubles at the exchange rate in effect on the relevant payment date. Once the payment is made, noteholders would be able to transfer the funds from the type “D” account opened with the bank to their other accounts in Russia or abroad, in Russian rubles or in other currency agreed with the bank, subject to applicable statutory requirements, including the completion of the relevant AML and KYC procedures to the satisfaction of the bank, but without the need to apply for a separate approval of the government commission.

To receive these payments as described, noteholders must deliver, along with proof of holding as of the Jan. 5 record date:

• A valid, completed and duly executed type “D” payments election notice;

• A duly executed deed of assignment and waiver, including a valid, completed and executed notice of the assignment and waiver; and

• The MT599 SWIFT renunciation instruction.

Holders can request the aforementioned forms and documents directly from the company at SIBUR_IR@sibur.ru. The required documentation must be submitted in both original form and photocopy, with the exception of the SWIFT renunciation that only requires a photocopy.

Photocopies may be e-mailed to the above address, and originals may be submitted by hand, by post or by courier with a shipment tracking number directly to SIBUR International GmbH’s company office located at 1040, Prinz Eugen-Straίe 8-10, Vienna, Austria.

Holders are warned that the type “D” election is irrevocable and will bind electing noteholders and their successors.

The company must receive all of the required documentation from electing holders no later than 5 a.m. ET on Jan. 31.

Sibur is an integrated petrochemicals company based in Moscow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.