Western banks are interested in assisting Russia to place Eurobonds in 2016, can opt out of his intentions, because the two clearing centre Euroclear and Clearstream, which act as intermediaries between the banks and the Issuer have not agreed on the paperwork. About it reports Reuters with reference to several sources in the banking market.
Two of the Agency’s interlocutors said that Euroclear and Clearstream do not want to enter into conflict with U.S. and European regulators, who advised companies to exercise caution in view of the fact that the work of the sovereign debt of Russia to violate the sanctions regime against Russia.
Thus, according to the sources, the participation of these two major centers — Euroclear and Clearstream — is a necessary condition for placing of the Russian Eurobonds.
“A key obstacle to the deal may be the reluctance [to participate] international clearing centers that can adhere to recommendations by the US and EU,” — said the source Reuters in the West Bank. Another source stated that an obstacle to the placement of Eurobonds is lack of consensus between the two clearing centres.
A third source familiar with the situation said that the question remains “challenging”. According to him, no legal basis for banks not to assist in the placement of Eurobonds is not like Euroclear and Clearstream do not accept the paperwork. “But, of course, we all have business relationships with USA, and sometimes even if legally everything is possible, it can be difficult to implement”, he added.
Reuters notes that the role of the clearing centres in the placement of Eurobonds, as a rule, “purely technical”. They act as intermediaries, getting money from investors before you transfer them to the Issuer, and dispose of securities on behalf of investors.
The Agency adds that Russia can theoretically place its Eurobonds without the participation of Western banks and clearing centers. However, it will be much more expensive, which puts into question the appropriateness of the placement.
Representatives of Euroclear and Clearstream refused official comments. The Ministry of Finance of Russia, which is the Issuer, also declined to comment, Reuters notes.
This week, the Agency Bloomberg with reference to high-ranking officials reported that Russia may postpone the sale of Eurobonds at a later date. The reason they call the pressure the EU and US banks, because of which Russia has failed to find the organizer of placing.
Prior to that, The Wall Street Journal, citing informed sources, wrote that a number of major European banks — BNP Paribas, Credit Suisse Group AG, Deutsche Bank AG, HSBC and UBS Group AG decided to drop from the placement of Russian Eurobonds. Previously, the newspaper had reported similar decision of U.S. banks.