The Restructuring (Novation) of Two Different Issues of Bonds Using the Multi-Lateral Clearing Procedure Was Performed for the First Time in the MICEX Stock Exchange Trading System
August 06, 2009
On August 5 an exchange deal was executed at the MICEX Stock Exchange for the restructuring (novation) of two different issues of bonds of Russian issuers who are members of the same economically inter-related group – NICOHIM. During restructuring, the settlements between holders at the MICEX Stock Exchange were based on applied technologies allowing (using the multi-lateral clearing procedure) counter liabilities on bond purchase and sale trade concluded at the exchange by holders of circulating bonds of NIKOSHIM-INVEST LLC of series 02 with URALSIB Capital LLC, which acted as the issuer’s restructuring agent, to be taken into account during settlement.
The deal was made within the bounds of the restructuring agreement between NIKOSHIM-INVEST LLC and lenders (holders of documentary interest non-convertible bearer bonds of series 02, State Registration No. 4–02–36046-R, dd. 18.05.2006). The issuer has satisfied the conditions of the Agreement, paying 10% of the face value of NIKOSHIM-INVEST LLC series 02 bonds in monetary form to the holders and having presented the series 02 shares of CAUSTIC LLC (a company that is also a member of the NICOHIM Group) at 90% of the face value.
As of August 5, 2009 NIKOSHIM-INVEST LLC had restructured 698,892 pieces of bonds, which made up about 78% of the total amount of the issuer’s circulating bonds of series 02. The remaining part of NIKOSHIM-INVEST LLC bonds of series 02 still in circulation will be restructured through similar exchange deals through August 10, 2009.
More Information:
The MICEX Stock Exchange is the leading stock exchange in Russia, the CIS countries, and Eastern and Central Europe. The Exchange is one of the top 20 leading stock exchanges in the world, with a share of about 90% of the aggregate exchange turnover in the Russian market. It provides the exchange with the possibility to act as the liquidity formation center for Russian securities and the major stock area for international investments in shares and bonds of Russian companies.
During the first six months of 2009, the total amount of trading on the MICEX Stock Exchange was RUR 16.83 trillion (USD 509 billion), including RUR 13.39 trillion in shares and RUR 3.44 trillion in bonds.
The MICEX Stock Exchange holds daily trading in shares and bonds of more than 740 Russian issuers and the exchange quote lists include 436 securities of 266 Russian issuers. Its traders include more than 670 organizations that are professional participants in the securities market, serving 653,000 clients, including 629,000 private investors (as of 1.01.2009 – 559,000). Trading at the exchange is held electronically using a state-of-the-art trading system. The exchange is connected to regional trading areas and more than 1700 remote workstations in the offices of banks, broker companies, and other financial institutions located in 100 cities throughout Russia.
The NICOHIM Group:
The NICOHIM Group is one of the leaders in the Russian chemical industry. It is the number one producer of hard caustic soda, synthetic hydrochloric acid, and custom chlorine; the 2nd largest producer of liquid caustic soda and sodium hypochlorite; and the 3rd largest producer of PVC in Russia. The company’s major production assets are located in the industrial section of the city of Volgograd on the base of largest enterprises of the Group – CAUSTIC OJSC and PLASTCARD OJSC.