Russia Steelmaker Severstal Says Eurobond Interest Payment Not Reached Issuer's Account

By Kyle Morris

Severstal PAO said Wednesday that a test payment made on March 16 in respect of the interest due from its Eurobond 2024 note didn't reach the issuer's account and was frozen by Citibank NA due to regulatory investigations.

Severstal is majority owned by Alexey Mordashov, a Russian oligarch sanctioned by the European Union and the U.K.

The Russian steelmaker said that it is taking all efforts to make the payment and that it is looking to apply for a license from the relevant authorities.

The Wall Street Journal reported late Tuesday that Severstal paid the $12.6 million interest payment to a unit of Citigroup, Inc., which collects the payments for bondholders, according to a person familiar with the matter. That money was transferred to the bank's U.S. accounts, but hasn't yet ended up with the bondholders.

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(END) Dow Jones Newswires

03-23-22 1111ET