The Bank of Russia has registered an issue of subordinated bonds of Sovcombank series T2-01 in the amount of $600 mln, the regulator’s website reports.

The issue was assigned registration number 4-15-00963-B.

The circulation term of the issue is 8.5 years, the possibility of early redemption at the discretion of the issuer is provided. The nominal value of the bonds is $200 th.

The loan is intended for qualified investors and will be placed by private subscription.

In the message of the Central Bank notes that “the bonded loan contains separate conditions that meet the concept of a subordinated loan, defined by Article 25.1 of the Federal Law of 12.12.1990 395-1 “On banks and banking activities” and the Regulation of the Bank of Russia of 04.07.2018 646-P “On the methodology for determining own funds (capital) of credit institutions (“Basel III”)”.

As previously reported, Sovcombank, which fell under blocking sanctions and is experiencing technical problems with making payments on dollar Eurobonds, offered Eurobond holders to exchange them for a new issue of local subordinated bonds – this will allow investors to receive payments bypassing the international payment infrastructure.

On April 21, the Bank paid in rubles the coupon on term subordinated Eurobonds maturing in 2030 to those holders whose rights to the bonds are recorded on NSD’s accounts.

No payments were made in favor of the issuer of the Eurobonds, Sovcom Capital. Making payments in favor of the issuer of Eurobonds by the methods provided for in the documentation is still impossible, the bank continues to work with regulators and payment agents to pay coupons to holders in international depositories, Sovcombank noted.

“However, there remains high uncertainty regarding the possibility of such interest payments in the future, both in favor of the agent and in favor of holders in NSD, due to conflicts of applicable Russian and foreign law,” the credit organization said in a statement.

Currently in circulation are 6 issues of exchange-traded bonds of the bank totaling 47.5 billion rubles, the issue of subordinated bonds for 1 billion rubles and two issues of foreign currency subordinated bonds in the amount of $250 million.

Sovcombank ranked 9th in terms of assets in the Interfax-100 ranking for 2021.