Russia’s Severstal seeks approvals to resume coupon payment processing amid sanctions

By Rebecca Melvin

Concord, N.H., March 29 – PAO Severstal has filed license applications with the U.S. Office of Foreign Assets Control regarding a $12.6 million coupon payment for loan participation notes that was due on Monday.

The loan participation notes due 2024 were issued by Steel Capital SA.

The applications were filed under an expedited basis and seek authorization under U.S. sanctions of Russia to resume normal processing of payments that are due under the notes program. This would include the release of funds that have been previously blocked by Citibank NA and the transfer of funds together with the remainder of the interest due to the issuer by the latter’s bank account with the paying agent, Citibank NA London Branch, and the normal payment of those funds on behalf of the issuer toward the holders of the notes.

Severstal is a steel and mining company based in Cherepovets, Russia.

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