Evraz says correspondent bank blocks $18.9 mln Eurobond coupon

MOSCOW, Mar 21 (PRIME) -- Correspondent bank Societe Generale New York has blocked a U.S. $18.9 million coupon payment on a $704 million Eurobond of U.K.-based mining giant Evraz, which operates mainly in Russia, due to compliance concerns, which may cause a default, the company said in a statement on Monday.

Evraz plc made a regular coupon payment with redemption date on Monday. But, according to the London branch of Bank of New York Mellon, the sum has not been redeemed as of today, and remains blocked by Societe Generale New York.

The company transferred $18.9 million to finance the coupon payment and received confirmation of the payment, but the correspondent bank stopped it, Evraz said.

According to Evraz, there are no reasons for non-compliance with liabilities except failures in the financial infrastructure work. The company has enough liquidity to carry out coupon payments, and it will make all the possible efforts in order to solve the situation as fast as possible, Evraz said.

The company said previously that the U.K. sanctions against tycoon Roman Abramovich should not hurt activities of Evraz as Abramovich is not a controlling shareholder. His stake in 28.64%.

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