Investors can trade securities that Minsk has repaid in rubles instead of dollars
Belgian custodian Euroclear has allowed investors to trade Belarusian sovereign Eurobonds within its infrastructure. Since 18 November, Euroclear has “exceptionally” resumed internal settlement of the $800 million Belarus-2023 issue, which Minsk repaid last year in local rubles to an account at the state-owned Belarusbank. This is stated in a statement of the depository seen by Vedomosti. Euroclear describes the move as an additional measure to protect the integrity of the securities.
However, Euroclear is only prepared to make internal settlements if a number of conditions are met. In particular, the buyer and seller must confirm their understanding that the issuer – Belarus, represented by the Ministry of Finance – has not transferred to Euroclear the amounts corresponding to the coupons and redemption of the bonds, and that there are local restrictions in Belarus itself on the receipt of these funds that are not controlled by Euroclear.
Andrei Gusev, Managing Partner at Nordic Star, commented on Euroclear’s decision to allow trading of Belarusian Eurobonds on its infrastructure. More details on the Vedomosti website by subscription.