Russian Railways fails to pay off issue of Eurobonds in dollars on time

Russian Railways has failed to pay off the issue of Eurobonds denominated in dollars on time, Report informs referring to the issuer.

The issue of Eurobonds in the amount of $1.4 billion was placed in 2012 at 5.7% per annum. On April 5, the company had to redeem the remaining Eurobonds of the issue for $604.6 million.

The issuer of securities - RZD Capital - did not receive funds from the borrower to repay the principal and interest.

Russian Railways informed the issuer that payments on the company's Eurobonds may be delayed or suspended indefinitely due to obligations to comply with legal and regulatory requirements within the correspondent banking network, the report says.