<p>Russian steel maker EVRAZ plc informed London Stock Exchange that it has made a regular coupon payment due on 21 March 2022 under outstanding principal amount of USD 704,099 million Notes due 2023. However, as per communication from the Bank of New York Mellon’s London Branch, the amount is not settled up until and remains blocked for compliance at the correspondent bank, Societe Generale New York. </p><p>EVRAZ said “Amid the unprecedented degree of uncertainty and due to the lack of feedback from relevant financial counterparties, regulators and advisors, in an effort to protect the rights of the Noteholders, on 16 March 2022, 2 business days prior to the deadline, the Issuer made a payment to the relevant account with the Principal Paying Agent in the amount of USD 18.922 million to fund a coupon payment under its 2023 Notes. The Issuer received swift confirmation for this payment. The payment was stopped for compliance by the correspondent bank, Societe Generale New York. Over the course of several days, the Company put all its efforts to release the payment from correspondent bank to specified account of the Principal Paying Agent, providing all requested information concerning this payment, its economic substance and nature. The Issuer received a confirmation that by close of business 18 March 2022, the Principal Paying Agent has not received the payment. Based on this confirmation, the Issuer notified the BNY Mellon Corporate Trustee Services Limited about the Potential Event of Default as defined in the Trust deed of 2023 Notes. The Company understands that the situation has its roots in the recently emerged uncertainties upon decision of the HM Treasury, Office of Financial Sanctions Implementation to include one of Company's shareholders Mr Roman Abramovich, owning 28.64% stake, in the extended sanctions list.”</p><p>EVRAZ also said “The Company continues to stand on the position that Mr Roman Abramovich does not have effective control of the Company. This position was outlined in the press release published on 10 March 2022.”</p><p>EVRAZ added “Furthermore, the Company believes that it is neither designated nor sanctioned. To provide comfort and certainty to all its counterparties, the Company has sought clarity and confirmation from Foreign, Commonwealth and Development Office and OFSI. Their responses are still pending. Separately, given the urgency of the matter, the Company has also approached OFSI and Sanctions Task Force of FCDO to provide clarifications specifically regarding the coupon payment. The Company would like to highlight that apart from malfunction of financial infrastructure, there are no reasons for a Potential Event of Default. The Issuer has sufficient liquidity to complete the coupon payments. The Company is fully committed to put all efforts to resolve the situation as soon as possible with release of coupon payment under the 2023 Notes and fulfil its payment obligations due on 4 April 2022 under its USD 700 million Notes due 2024.”</p>
<p>Russian steel maker EVRAZ plc informed London Stock Exchange that it has made a regular coupon payment due on 21 March 2022 under outstanding principal amount of USD 704,099 million Notes due 2023. However, as per communication from the Bank of New York Mellon’s London Branch, the amount is not settled up until and remains blocked for compliance at the correspondent bank, Societe Generale New York. </p><p>EVRAZ said “Amid the unprecedented degree of uncertainty and due to the lack of feedback from relevant financial counterparties, regulators and advisors, in an effort to protect the rights of the Noteholders, on 16 March 2022, 2 business days prior to the deadline, the Issuer made a payment to the relevant account with the Principal Paying Agent in the amount of USD 18.922 million to fund a coupon payment under its 2023 Notes. The Issuer received swift confirmation for this payment. The payment was stopped for compliance by the correspondent bank, Societe Generale New York. Over the course of several days, the Company put all its efforts to release the payment from correspondent bank to specified account of the Principal Paying Agent, providing all requested information concerning this payment, its economic substance and nature. The Issuer received a confirmation that by close of business 18 March 2022, the Principal Paying Agent has not received the payment. Based on this confirmation, the Issuer notified the BNY Mellon Corporate Trustee Services Limited about the Potential Event of Default as defined in the Trust deed of 2023 Notes. The Company understands that the situation has its roots in the recently emerged uncertainties upon decision of the HM Treasury, Office of Financial Sanctions Implementation to include one of Company's shareholders Mr Roman Abramovich, owning 28.64% stake, in the extended sanctions list.”</p><p>EVRAZ also said “The Company continues to stand on the position that Mr Roman Abramovich does not have effective control of the Company. This position was outlined in the press release published on 10 March 2022.”</p><p>EVRAZ added “Furthermore, the Company believes that it is neither designated nor sanctioned. To provide comfort and certainty to all its counterparties, the Company has sought clarity and confirmation from Foreign, Commonwealth and Development Office and OFSI. Their responses are still pending. Separately, given the urgency of the matter, the Company has also approached OFSI and Sanctions Task Force of FCDO to provide clarifications specifically regarding the coupon payment. The Company would like to highlight that apart from malfunction of financial infrastructure, there are no reasons for a Potential Event of Default. The Issuer has sufficient liquidity to complete the coupon payments. The Company is fully committed to put all efforts to resolve the situation as soon as possible with release of coupon payment under the 2023 Notes and fulfil its payment obligations due on 4 April 2022 under its USD 700 million Notes due 2024.”</p>
