XS0088543193 RUSSIA 12¾ 28 70 74

 

General Market Update   Last week, the main focus of the secondary market trading in Russian debt was on Gazprom and OFZs. Several large blocks and many more small positions exchanged hands during the week. In each case the activity was fueled by the looming deadlines in Russia steadily pushing prices higher for these bonds in western markets. Certain Gazprom programs are expected to remain attractive to a small number of speculative buyers this week as well, while trading in OFZs is due to fully stop with the last settlements set to be finalised by 2nd and 3rd November at the latest.   Despite the positive sentiment suggested by rising prices in Eurobonds of non-sanctioned companies such as Gazprom, the prospect for foreign investors who keep to their Russian holdings is becoming increasingly uncertain. For instance, many Russian companies such as Gazprom, Norilsk Nickel and other issuers have implemented schemes which allowed them to service Russian holders directly (either via an alternative payment clause or replacement bonds). Such schemes should have permitted Russian issues to secure government licenses to make payments to the foreign investors as well. However, it appears that to date, holders outside of Russia have not yet received payments which, for example, Gazprom and Norilsk Nickel were due to fulfill back in September and by now such payments could fall outside of the grace period for these bonds. Moreover, if the bond reached maturity and was not paid on time by the paying agent, the bond becomes practically unsellable since the registry has already been fixed by the clearing systems, and if such maturity payment had indeed been released in some distant future, any transactions after the record date are likely not to be recognised resulting in the maturity payment being directed to the seller of the bonds instead. With respect to other news, the Russian government has submitted a bill to the State Duma designed to extend for a one-year deadline for Russian borrowers to apply for the simplified procedure to replace their outstanding Eurobonds. The new deadline for the process is set to be December 2023. The law allowing Russian companies to place "substitute" bonds was signed by the president in July of this year. It is designed to solve the problem of payments on Eurobonds faced by the Russian companies, and to ensure that payments reach Russian investors who have been cut out from the established payment mechanisms due to the refusal of foreign depositories to transfer funds in NSD. In the current version, the document allows Russian borrowers to exchange Eurobonds for the local equivalent programs without registering a new prospectus.  In addition, it is proposed to extend the rule which limits the possibility of declaring cross-defaults for six months (i.e. until 1st July 2023). According to the current law, the right of the creditor to accelerate obligation arising from the loan agreement, including the loan agreement related to the bonds, is not considered to have arisen if the borrower has paid off its debt obligations in accordance with the temporary procedure for making payments or if failed to pay them (or paid them improperly) due to "non-financial circumstances" that could not be prevented by the debtor. Indicative Prices  DRs ISIN Issuer $/unit US6698881090 NOVATEK 16.25 US55315J1025 MMC NORILSK NICKEL 2.2 US8688612048 SURGUTNEFTEGAS 0.35 US8688611057 SURGUTNEFTEGAS 0.4 US73181M1172 POLYUS 4.5 US73181M1099 POLYUS 4.5 US73181P1021 POLYUS 5 US3682871088 GAZPROM 0.55 US3682872078 GAZPROM 0.6 US6074091090 Mobile Telesystems 0.7 US7821835037 RUSHYDRO 0.1 US7821834048 RUSHYDRO 0.15 US67812M1080 Rosneft 0.5 US67812M2070 Rosneft 0.45 US55953Q2021 Magnit 1.2 US55953Q1031 Magnit 1.7 US69343P1057 Lukoil 7.1 US69343P2048 Lukoil 7.1 US29355E1091 En+ Group 0.6 US29355E2081 En+ Group 0.6 US71922G1004 PhosAgro 3.2 US71922G3083 PhosAgro 3.2 US8766292051 Tatneft 3.5 US3133541025 Federal Grid Company 0.07 US3133542015 Federal Grid Company 0.07 US45835N1054 PJSC Inter RAO UES 0.45 US45835N2045 PJSC Inter RAO UES 0.45 US0373763087 Mosenergo 0.15 US61954Q1004 Mosenergo 0.15 US69343X1081 PJSC Rosseti 0.15 US69343X3061 PJSC Rosseti 0.3 US69343X2071 PJSC Rosseti 0.15 US69343X4051 PJSC Rosseti 0.3 US29268L1098 Enel Russia 0.03   * Indicative price for positions with institutional size only. For smaller sizes please call desk  Fixed Income Gazprom Last week Gazprom Capital exchanged $539.9m Eurobonds due in 2034 for local debt securities as part of “substitute” program for the holders, whose rights are accounted for by Russian depositories. According to the company, the share of actually placed bonds from the total number of securities in circulation amounted to 45%. Before the replacement, Gazprom had $1.2bn Eurobonds in circulation, with the coupon rate of 8.625%, and the nearest coupon payment which fell due on 28th October. Meanwhile, on 27th October, Gazprom has also started placing local bonds to replace another eurobond issue with maturity in November 2024, denominated in euros. According to the report, the company can place up to maximum nominal amount of EUR 750m bonds, which coincides with the outstanding nominal of the equivalent Eurobond. The start date of the placement is 27th October, the planned end date is 10th  November. ISIN Ticker Bid Ask XS2408033210 GAZPRU 1.85  28   48 52 XS2301292400 GAZPRU 1½   27   45 48 XS1911645049 GAZPRU 2.949 24   57 61 XS2157526315 GAZPRU 2.95  25   48 52 XS2291819980 GAZPRU 2.95  29   48 51 XS1721463500 GAZPRU 2¼   24   48 54 XS1795409082 GAZPRU 2½   26   46 51 XS2196334671 GAZPRU 3     27   48 51 XS2243636219 GAZPRU 3.897 PERP 30 35 XS2124187571 GAZPRU 3¼   30   45 48 XS2363250833 GAZPRU 3½   31   53 57 XS1521039054 GAZPRU 3⅛   23   56 60   * Indicative price for positions with institutional size only. For smaller sizes please call desk  Lukoil Last week Lukoil partially exchanged 2 additional Eurobond program for local “substitute” bonds. More specifically, the company replaced USD 257.4m Eurobonds maturing in 2027 and USD 254m to Eurobonds maturing in 2031. Therefore, the share of bonds exchanged for these 2 programs from the total number of Eurobond in circulation amounted to 22.39% for 2027 maturity and 22.09% for 2031 maturity. The parameters of the "replacement" bonds (nominal value, maturity, coupon) are fully equivalent to the parameters of the corresponding issue of Eurobonds, and their servicing will be carried out in rubles at the exchange rate of the Central Bank of the Russian Federation on the date of payments.   Novatek The company offered holders of dollar-denominated Eurobonds with a maturity in 2022 to agree on the possibility of direct payments in rubles to investors whose rights are accounted for by Russian depositories.  In addition, the company asked investors to agree on an increase in the grace period during which non-payment of amounts due on the date of interest payment or on the maturity date can be eliminated without the occurrence of an "event of default". In the case of payment of the principal amount of the debt, the grace period is proposed to be increased from 7 to 60 working days, in the case of payment of interest and other amounts - from 14 to 60 working days.  Investors who own Eurobonds as of 9th November will be able to take part in the voting. The deadline for submitting consent is no later than 11th November at 17:00 London time, the meeting of Eurobond holders will be held on 15th November. ISIN Ticker Bid Ask XS0864383723 NVTKRM 4.422 22   60 65   * Indicative price for positions with institutional size only. For smaller sizes please call desk  Sovcomflot The company exchanged USD 317.8m Eurobonds for local bonds due in 2028. This amounts to almost three-quarters of the Eurobonds in circulation for 2028, or 73.9%. When placing the bonds, the holders were allowed to “pay” for the “substitute” local bonds either in Eurobonds with maturity in 2028, or by the transfer (assignment) of all property and other rights under such Eurobonds. The company disclosed that local bonds paid for by Eurobonds amounted to USD 278.2m, while the transfer of rights route was exercised by holders of USD 39.6m. The maturity date of the exchanged Eurobonds is 26th April 2028, the coupon rate is 3.85% (i.e. same as for the original Eurobonds). ISIN Ticker Bid Ask XS2325559396 SCFRU  3.85  28   Call desk for prices XS1433454243 SCFRU  5⅜   23   17 20   * Indicative price for positions with institutional size only. For smaller sizes please call desk  Other Indicative Prices  ISIN Ticker Bid Ask XS0805131439 AKBARS 8     22   29 34 XS2230649225 BOINTE 6     26   32 34 XS2281299763 CRBKMO 3.1   26   15 19 XS2384475930 CRBKMO 3⅞   26   15 19 XS2099763075 CRBKMO 4.7   25   18 23 XS1951067039 CRBKMO 5.15  24   18 21 XS1759801720 CRBKMO 5.55  23   19 23 XS1964558339 CRBKMO 7.121 24   19 23 XS1589106910 CRBKMO 7½   27   12 16 XS2392969395 CRBKMO 7⅝   PERP 12 16 XS1601094755 CRBKMO 8⅞   PERP 10 13 XS1843443273 EVRAZ  5¼   24   44 48 XS1533915721 EVRAZ  5⅜   23   46 50 XS1405775450 GLPRLI 6½   23   20 24 XS1589324075 GMKNRM 4.1   23   58 62 XS1772800204 HCDNDA 5.075 23   15 19 XS2082937967 HYDRRM 6.8   24   17 24 XS2232013263 IMHRUS 5.9   25   9 12 XS2400040973 METINR 3⅜   28   21 25 XS0921331509 MOBTEL 5     23   23 25 XS2346922755 NLMKRU 1.45  26   50 55 XS1577953174 NLMKRU 4     24   54 59 XS1843435337 NLMKRU 4.7   26   52 57 XS1405775617 NLMKRU 4½   23   56 60 XS1405775617 NLMKRU 4½   23   56 61 XS2304902443 OZON   1⅞   26   53 58 XS2396900685 PGILLN 3¼   28   44 48 XS1713474325 PGILLN 4.7   24   46 50 XS1533922933 PGILLN 5¼   23   48 51 XS2384719402 PHORRU 2.6   28   49 52 XS2099039542 PHORRU 3.05  25   52 54 XS1752568144 PHORRU 3.949 23   56 59 XS2010026560 PIKCOR 5⅝   26   14 17 XS1711554102 POGLN  8⅛   22   8 13 XS1759468967 RUALRU 4.85  23   28 32 XS1577964965 RUALRU 5.3   23   29 33 CH0522690715 RURAIL 0.84  26   15 19 CH0419041618 RURAIL 0.898 25   17 21 CH0419041634 RURAIL 1.195 28   13 17 CH0379268748 RURAIL 2.1   23   25 27 CH1100259816 RURAIL 3⅛   PERP 4 8 XS1041815116 RURAIL 4.6   23   18 23 XS1574068844 RURAIL 4⅜   24   16 20 XS1502188375 RURAIL 9.2   23   29 33 XS2199713384 SIBUR  2.95  25   37 42 XS2010044621 SIBUR  3.45  24   38 43 XS1693971043 SIBUR  4⅛   23   40 45 XS2384174228 SUEK   3⅜   26   14 18 XS2317279060 TLGRAM 7     26   80 82 XS2116222451 TRUBRU 4.3   27   15 20 XS2239639433 VKCOLI 1⅝   25   42 50   * Indicative price for positions with institutional size only. For smaller sizes please call desk  Russian Government Bonds ISIN Ticker Bid Ask XS0971721963 RUSSIA 5⅞  43 49 53 XS0767473852 RUSSIA 5⅝  42 49 53 RU000A0JXU14 RUSSIA 5¼  47 32 37 RU000A1006S9 RUSSIA 5.1  35 34 39 XS0971721450 RUSSIA 4⅞  23 63 68 RU000A0ZYYN4 RUSSIA 4⅜  29 36 39 RU000A0JWHA4 RUSSIA 4¾  26 37 40 RU000A0JXTS9 RUSSIA 4¼  27 38 41 RU000A0ZZVE6 RUSSIA 2⅞  25 38 41 RU000A1034K8 RUSSIA 2.65 36 32 37 RU000A102CK5 RUSSIA 1⅛  27 32 37 XS0088543193 RUSSIA 12¾ 28 70 74 RU000A102CL3 RUSSIA 1.85 32 31 34 XS0114288789 RUSSIA 7½  30 38 42 RU000A0JWM07 RFLB   7¾  26 32 37 RU000A0JS3W6 RFLB   8.15 27 30 34 RU000A0ZYUB7 RFLB   7¼  34 30 34 RU000A0ZZYW2 RFLB   7.95 26 30 34 RU000A0JXFM1 RFLB   7.7  33 30 34 RU000A100A82 RFLB   7.65 30 30 34 RU000A0JXB41 RFLB   7.4  22 39 42 RU000A0JXQF2 RFLB   7.1  24 36 40 RU000A0JTK38 RFLB   7.05 28 33 37 RU000A0JU4L3 RFLB   7    23 37 41 RU000A0ZYU88 RFLB   6½  24 36 40 RU000A103901 RFLB   6.9  31 30 34 RU000A0ZYUA9 RFLB   6.9  29 30 34 RU000A1014N4 RFLB   6    27 31 35 RU000A101QE0 RFLB   4½  25 35 38    * Indicative price for positions with institutional size only. For smaller sizes please call desk  This message (including any attachments) has been issued by Illiquidx Limited (IlliquidX) (FRN 708666). Illiquidx Limited is authorised and regulated by the Financial Conduct Authority. This message is confidential and is to be used by the intended recipients only. If you have received it by mistake please notify the sender by return e-mail and delete this message from your system. Any unauthorised use or dissemination of this message in whole or in part is strictly prohibited and is being monitored.