RUS

 
 
04.03.2022

Yandex warns of default risk after suspension of trading

Yandex warns of default risk after suspension of trading

"Yandex" published a message to shareholders about the consequences of the restrictions imposed after the entry of Russian troops in Ukraine. The company said that if the holders of some of their bonds exercise their right of demand on March 4, "Yandex" will not be able to fulfill its obligations under the debts. The bonds in question are 0.25% bonds with a maturity of $1.25 billion in 2025. Representative  informed  Kommersant that the company warned about "theoretically possible risks, as it is obliged to do."

"Yandex" published a message to shareholders about the consequences of the restrictions imposed after the entry of Russian troops in Ukraine. The company said that if the holders of some of their bonds exercise their right of demand on March 4, "Yandex" will not be able to fulfill its obligations under the debts. The bonds in question are 0.25% bonds with a maturity of $1.25 billion in 2025.

Trading of Yandex securities, as well as a number of other Russian companies on NASDAQ and the New York Stock Exchange were suspended on February 28. "Yandex specifies that when trading in Class A shares on NASDAQ is suspended for more than five trading days, shareholders have the right to demand that the bonds be cashed in.

"Yandex Group as a whole does not have the resources necessary to fully redeem the notes," the company said in a press release. If Yandex shareholders exercise the right to repurchase a significant amount of shares, without raising additional funding, it would have "a significant negative effect on our short-term financial position and could affect our ability to meet other obligations."

The group also warned that it would not be able to redeem most of the bonds if restrictions were placed on the transfer of funds from Yandex's Russian units to its parent company, Yandex N.V., which is registered in the Netherlands. "Yandex paid coupon income on the bonds in question the day before, Bloomberg reported, citing investors. The payment amounted to $4.7 mln. This is the first coupon payment from the Russian company since restrictions were imposed due to the military operation in Ukraine. 


Photo: kp.ru, GLOBAL LOOK PRESS


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