Payments due on international bonds issued by Russia’s Gazprom (GAZP.MM) have been transferred to some creditors, a source familiar with the matter; amid the economic tit-for-tat surrounding the country’s gas flows to Europe.
This includes the payment due on a 500 million Swiss franc ($516 million) bond maturing on Tuesday and two other payments that fell due on June 29. Another source confirmed that the latter two payments had found their way to some creditors. However, a payment due on a $1 billion dollar-denominated bond maturing had not yet reached investors, the first source added.
Russia and a number of its corporates – once investors’ darlings for lucrative yields and healthy state finances; which have found themselves unable to service its debt following Western sanctions aimed at stopping Moscow’s military actions in Ukraine. The White House and Moody’s credit agency last month said Russia; Who had defaulted on its international bonds for the first time in more than a century; after foreign investors did not receive $100 million in coupon payments on two Eurobonds.
Gazprom and Citi – the latter acting as the agent on some of the bonds did not reply to a request for comment. Deutsche Bank, which acts as the trustee on a number of securities, declined to comment. The firm has issued its Eurobonds mainly via Gaz Finance and Gaz Capital; its finance arms based in the United Kingdom and Luxembourg, respectively.