The company could not pay for Eurobonds
JSC “Russian Railways” is recognized as in default on one of the issues of Eurobonds, according to Bloomberg with reference to the Committee on Credit Derivatives (Credit Derivatives Determinations Committees).
about “green” Eurobonds for 250 million Swiss francs. The securities were issued in 2020, the maturity date was March 14. Until the end of the 10-day grace period, the company was unable to make the payment due to the sanctions imposed on it. In addition, Russian Railways did not receive coupon payments on Eurobonds in British pounds and rubles, and it failed to repay Eurobond dollars.
Then the credit default swap mechanism (CDS) was launched, otherwise credit risk insurance. In other words, investors will be reimbursed for certain amounts, but which ones have yet to be found out, the agency notes. The last time the country had an “external default” was after the 1917 revolution. Recall that last Saturday, the rating agency S&P announced that Russia is in a state of “selective default” due to the fact that since April 4, tried to make a means of payment for dollar bonds Russian rubles .
