The articles are available to subscribers only. The Eligible Market Participant also submitted the following information based on the articles and the terms of the 2022 Russian sovereign bonds. This is not a decision or statement of the EMEA DC:
On May 11, 2022, bondholders of the 4.5% 2022 Russian sovereign bonds submitted a default notice via Euroclear demanding the payment of approximately $1.9 million in accrued interest payments in respect of the delayed principal repayment upon maturity of the bonds. The bonds matured on April 4, 2022 but the payment of principal and interest due at maturity was not made until May 2. The bond documents provide for interest to continue accruing on the principal until the principal is discharged at the 4.5% coupon on a 30/360 day count, resulting in approximately $1.9 million in additional interest being owed upon discharge of the bonds. Russia did not include accrued interest beyond April 4, 2022 in its payment, putting it in default under the bonds. Following the demand from bondholders, Russia has not paid the interest owed.
Timeline
Key Timeline:
Thursday 26 May 2022
Event Determination Date
Friday 9 September 2022
2.00pm London time: EMEA DC meeting with respect to Supplemental Auction Settlement Terms.
5.00pm London time:deadline for submission of Customer Physical Settlement Requests to the relevant Participating Bidder.
Monday 12 September 2022
Auction Date.
Tuesday 13 September 2022
2.00pm London time: deadline for Customers to deliver Notice of Physical Settlement to Participating Bidders (or, if applicable, their Affiliates) in respect of any Customer Buy RASTs (i.e. where Customers are delivering the Deliverable Obligations).
4.00pm London time: deadline for Participating Bidders to deliver Notices of Physical Settlement to other Participating Bidders in respect of any Direct RASTs (i.e. where Participating Bidders are delivering Deliverable Obligations to other Participating Bidders).
6.00pm London time: deadline for Participating Bidders (or, if applicable, their Affiliates) to deliver Notices of Physical Settlement to Customers in respect of any Customer Sell RASTs (i.e. where Participating Bidders are delivering Deliverable Obligations to Customers).
Wednesday 14 September 2022
4.00pm London time: deadline for Sellers to deliver to Buyers any Seller Notices of Physical Settlement.
Thursday 15 September 2022
Auction Settlement Date.
Physical Settlement Dates in respect of any Representative Auction-Settled Transactions:
Customer Buy RAST: Thursday 15 September 2022
Direct RAST: Monday 19 September 2022 - Note this was the originally scheduled date but see the note below.
Customer Sell RAST: Wednesday 21 September 2022 - Note this was the originally scheduled date but see the note below.
[Note that the Physical Settlement Dates will be affected by the bank holiday in the UK for the funeral of Queen Elizabeth II. The bank holiday falls on 19 September 2022, so the Physical Settlement Date for the Direct RASTs will be deferred until 20 September 2022 and the Physical Settlement Date for Customer Sell RASTs will be deferred until 22 September 2022.]
