Russian investors to get paid on Belarus Eurobonds

By bne IntelliNews April 16, 2024

Belarusian authorities are preparing a new decree under which outstanding Eurobonds will be settled with all Russian investors, and not just those who bought the securities before September 2022, as previously planned, Vedomosti daily reports citing Russia’s Deputy Finance Minister Ivan Chebeskov.

As followed by bne IntelliNews, previously the country has already been labelled in default of its obligations after it tried to switch to paying coupons in Belarusian rubles in 2022 and has had another $2.45bn of bonds outstanding, which it can barely cover with its hard currency reserves.

“In our view, the news is positive for Softline [Russian software major], whose balance sheet reflected RUB8.3bn of Belarusian Eurobonds at the end of 2023,” Renaissance Capital commented.

At the same time, RenCap also notes that investments in Belarusian Eurobonds were booked at a discount and the company may actually receive a larger amount. 

“We expect that in case of repayment the realised funds will be used to develop Softline's business, including possible M&A transactions. However, in our view, there is still no certainty that the company will receive the payments in the near future,” RenCap believes.