20 October 2022

LCPIS debut appointment as trustee for MMK International Capital DAC Eurobonds

It is for the first time in the Russian borrowers Eurobond market that a foreign trustee is replaced by a trustee registered in Russia. LECAP was designated as vote proxy and acted as a representative authorised to vote on behalf of those Eurobond holders unable to attend the Meeting

On October 18, 2022, Legal Capital Investor Services (LCPIS) was appointed as trustee for USD 500,000,000 4.375% Eurobonds due 2024 (the “Eurobonds”) issued by MMK International Capital DAC to replace Citibank N.A., London branch, the previously designated trustee.

On October 19, 2022, PJSC Magnitogorsk Iron & Steel Works (PJSC MMK) successfully completed the procedure for obtaining the consent of the Eurobond holders, including, inter alia, for the replacement of the previously appointed trustee with LCPIS. Voting of the Eurobond holders took place at the meeting held via teleconference (the “Meeting”).

It is for the first time in the Russian borrowers Eurobond market that a foreign trustee is replaced by a trustee registered in Russia. Due to sanctions restrictions, trustees associated with large foreign investment banks have stopped providing services to issuers associated with Russian borrowers. The appointment of LCPIS as a new trustee will allow PJSC MMK to ensure further observance of the rights of investors under Eurobonds against the backdrop of the refusal of foreign investment banks to perform their functions and the existing sanctions pressure.

LECAP was designated as vote proxy and acted as a representative authorised to vote on behalf of those Eurobond holders unable to attend the Meeting.

LCPIS and LECAP both have extensive experience and deep expertise in providing a full range of Eurobond-related services in the new market realities in terms of sanctions restrictions.

Company Information

LCPIS is an independent bondholder representative (Russian analogue of trustee) representing bondholders in 160+ bond issues for a total amount of more than 1.5 trillion rubles. For five consecutive years (2017–2021), LCPIS took the first place in the bondholder representative annual ranking conducted by Cbonds, the leading Russian financial information agency. In 2021, LCPIS won in the newly introduced Best Bondholder Representative nomination by Cbonds Awards.

In the Eurobond market, LCPIS acts as trustee, proxy, information and tabulation agent.

LECAP is the Best DCM Law Firm in 2012 – 2021 according to Cbonds. LECAP offers a full range of legal services related to amending the terms of outstanding Eurobond issues. LECAP team includes lawyers qualified in both Russian and English law.