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Lukoil will place replacement bonds worth more than $6 billion (September 23, 2022)

The Board of Directors of Lukoil decided to place replacement bonds for $6.3 billion.

According to the company’s press service, it is about five issues of bonds replacing Eurobonds, “the rights to which are recorded in Russian depositories.” The company plans to apply to the Central Bank for state registration of replacement bonds issues. “The parameters and terms of the issues will be publicly disclosed after the registration of issue documents by the Bank of Russia,” the press release states.

It is reported that the parameters of the replacement bonds – face value, maturity, coupon – will be fully equivalent to the parameters of the corresponding Eurobond issues, and their servicing will be carried out in rubles at the rate of the Central Bank on the date of the corresponding payments.

The issue of replacement bonds will be carried out in accordance with the requirements of the presidential decree of July 5 this year, the press service noted.

According to TASS, in particular, bonds of the ZO-23 series in the amount of 1.5 million units with a total amount of $1.5 billion with a maturity date of April 24, 2023, bonds of the ZO-26 series in the amount of 1 million in the amount of $1 billion with a maturity date of November 2, 2026, 1.15 million ZO-27 series bonds for $1.15 billion maturing April 26, 2027, 1.5 million ZO-30 series bonds for $1.5 billion maturing May 6, 2030, as well as 1.15 million ZO-31 series bonds for $1.15 billion maturing October 26, 2031. The issued bonds are payable in Eurobonds issued by LUKOIL International Finance, LUKOIL Capital DAC and LUKOIL Securities.

Russian President Vladimir Putin signed a law in July allowing Russian issuers holding Eurobonds that are not paying due to being blocked abroad to issue replacement bonds in 2022.

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