Russia Paid $616 Million in Coupon Payments for Seven OFZ Bonds

Russian Ministry of Finance paid 50.2 billion roubles ($616 million) in coupons on its seven OFZ treasury bond issues, according data on its website as reported by Reuters.

The payment comes as the finance ministry is due to make a $447 million coupon payments of Thursday on a dollar Eurobond that would mature in 2030.

The National Settlement Depository (NSD), a Russian national clearing house, citing a central bank’s order, said this month that foreign OFZ bond holders are barred from receiving coupon payments until further notice.

NSD, which processes OFZ interest payments on behalf of the finance ministry, did not immediately reply to a Reuters request for information on which investors received the coupon payouts.

OFZs are bonds used by government to finance budgetary needs. Before the West imposed sanctions on Russian financial system, these bonds were popular among foreign investors thanks to their lucrative yields and strong fundamentals of the Russian economy.

This week, Russia has offered to repay in roubles part of a $2 billion Eurobond that matures on April 4, to secure payments for local investors who may not be able to receive dollars.