Sanctioned Russian shipowner Sovcomflot (SCF Group) has redeemed part of a bond issue swapped for Russian notes due to payment difficulties in Ireland.
The tanker and LNG carrier player said it has settled in full its domestic debt due this year. A total of $377m was known to be outstanding in Russia.
But this still leaves it with some eurobonds that investors have not yet swapped for ones that pay out in roubles.
Sovcomflot pledged to repay the Irish notes, but has so far been stymied by its agent refusing to take payment due to sanctions.
The owner has also been able to pay a coupon due on the portion of its 2028 bonds that were replaced in Russia, without giving a figure.
But again, it is still trying to make payments outside of Russia for that series.
“SCF Group has the necessary financial resources needed to make all payments under the eurobonds 2028 due to the bondholders,” the company said.
“However, because of sanctions restrictions, the paying agent and international CSDs [central securities depositories] refuse to accept from SCF Group any cash to be further distributed to bondholders,” it added.
Sovcomflot is actively liaising with Irish and UK regulators and the paying agent to obtain the clearance needed to hand over cash.
In the meantime, bondholders of the 2028 series have until 22 May to swap more of these notes.
The two eurobond issues were worth $928m.
The owner managed to replace $318m of its 2028 tranche in October.
$220m more to swap
And in December, the Moscow-listed company replaced $377m of its 2023 series.
After the swaps, there were still $121m of the Irish 2028 tranche in overseas circulation, and $112m of the 2023 series.
The 2028 coupon remains at 3.85% in Russia, while the 2023 bond paid 5.375%.
The company has told investors there are no plans for an early redemption of the 2028 series.
Sovcomflot is known to have missed two interest payments on its two issues in 2022.
The missed coupon in April was worth $8.28m on the 2028 series; the missed June payment was not specified.
The Irish notes were delisted by the Irish Stock Exchange on 12 April 2022, which Sovcomflot said was done “without proper notification”.
