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Step 1 — Check the chain of custody of your securities
If you have invested in Russian Eurobonds, the first thing you need to do is to find out whether there is a Russian depository in the chain of custody.
This information can be obtained from the broker through whom the securities were purchased or from your depository.
- If your Eurobonds are accounted for in NSD or in a Russian securities depository which has an account with an international depository to record rights to Eurobonds, funds will be delivered to you in the manner prescribed by Article 8.7 of Federal Law No. 39-FZ of 22 April 1996 "On the Securities Market", i.e. by so-called "cascade payments".
If you are an investor of such a group, you will receive income payments as before. You do not need to submit any application or further forms to NSD. You can keep track of your receipts as before, for example in your brokerage account.
Payments will be made at the exchange rate of the nominal currency as set by the Bank of Russia on the payment date stipulated in the bond issue documents.
If you do not receive payment from the Russian depository by the due date, you should contact your Russian depository for further details.
- If your Eurobonds are held with an international securities depository without any Russian depository involved, you need to have your title to the security confirmed in order to receive income proceeds. NSD will be the paying agent for these securities, so you will need to file an application and submit the necessary documents to NSD in order to receive income payment.
Step 2 — Clarify whether there has been a disclosure of an international depository
In accordance with the new payment procedure, NSD sends requests to international securities depositories to obtain names of Eurobond holders. Contact your broker or depository and find out whether the international depository has provided information on you upon NSD's request. This will determine whether you will need to provide NSD with a complete set of documents or a partial set (only tax accounting documents) in order to receive income payments.
Important: in practice, such a disclosure occurs very rare.
We recommend you not to make this branch as a priority, but start preparing the full set of documents immediately.
Step 3 — Submit an online application for income payout using the form on NSD's website
To facilitate communication on Eurobond payouts, please fill and submit the online payout application on NSD's website. That way, we can prepare a full list of documents that will be required specifically from you, send it to you and track your application. Please complete all fields in the form, including ISIN of the security and the record date. Holders of Russian Federation Eurobonds and persons exercising rights under such securities are recorded either at the end of the third business day prior to the payment date or earlier in accordance with the procedure set forth in the issue documents.
Please note that you must submit your online income payment application and/or original documents after the record date relating to the relevant payment, as proof of Eurobond ownership is required precisely on the record date relating to the payment. Applications submitted before the record date will automatically be rejected.
Step 4 — Prepare documents for submission to NSD
- If you have applied for income payout through the online form on the website, we will send you a list of documents that you have to submit by return email.
- If you have not applied through the form, please use the list of documents below.
Step 5 — Submit original documents to NSD
Original documents may be delivered to NSD in person to the address: 12 Spartakovskaya St., Moscow, 105066 (entrance from Pleteshkovkiy Lane) or by Russian Post or other telecom operators.
Documents are accepted at the office:
- MON–THU 09:00 – 18:00 (break: 13:00 – 13:45)
- FRI 09:00 – 16:45 (break: 13:00 – 13:45)
Step 6 — Wait for completion of verification and income payout
Document review takes up to 10 business days, and if after its completion NSD has no doubts about the sufficiency of the documents, NSD will make payments in Russian roubles within 3 business days.
If the international depository provides NSD with information on you and the Eurobonds held by you, the payment will be sent to your bank account specified in the international depository's disclosure in an amount equivalent to the amount due for payment in the currency of the Eurobond face value on the date of crediting.
If the international depository does not provide NSD with information on you and the Eurobonds held by you, payment will be sent to your account as you specify in your income payout application in an amount equivalent to the amount due for payment in the currency of the Eurobond face value on the date of crediting. Payments can only be made to a personal rouble-denominated account, so if you don't have one, you will need to open one.
However, until title is confirmed, funds will be deposited by NSD into a special ruble account (type "I" account) from which they will be paid to you subsequently. Funds on the specified account will be indexed at the current market exchange rate for the nominal currency until actual settlement with the owners.
Payments from the special indexed account will be made as the full set of documents for payment is received and the holder is included in the Register in accordance with paragraph 2d) of Order No. 2445 of the Ministry of Finance of Russia dated June 24, 2022 based on this package.
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