The sanctioned Rosselkhozbank (RSHB) failed to pay the coupon on its $500 million dollar Eurobonds maturing in 2023 on time. It became the second Russian bank to be in default.
It is reported by the bank itself.
The bank said it has failed to make interest payments totaling $21.25 million to RSHB Capital S.A., the issuer of the Eurobonds, due to U.K. sanctions on April 16. (Luxembourg).
According to the report, the payment agent has not confirmed its readiness to accept payment from the bank and carry out payment of interest to depositories Euroclear / Clearstream / DTC, and further to holders of Eurobonds.
RSHB became the second Russian bank to officially report problems with payments. Earlier, Sovcombank, which was subject to U.S. sanctions, announced that it had suspended interest accrual on two Eurobond issues. The bank explained that due to the sanctions imposed against it, it "does not have the technical ability to dispose of blocked assets and fully use the international payment infrastructure to service loans.
Earlier Bloomberg wrote that Russia's first default on foreign liabilities in a century now looks almost inevitable. Data on debt insurance coverage gives a nearly 90 percent probability of default within 12 months.