November 29, 2017 / 8:02 AM / a year ago

UPDATE 2-Russian Standard Ltd defaults on Eurobond secured by bank stake

(Adds Russian Standard Ltd comment)

By Yelena Orekhova

MOSCOW, Nov 29 (Reuters) - Russian Standard Ltd, a company linked to Rustam Tariko who owns Russian Standard Bank, has defaulted on a Eurobond due on Oct. 27, 2022, the Russian National Settlement Depository said on Wednesday.

The Eurobond was secured by a 49-percent stake in Russian Standard Bank. It was issued on Oct 27, 2015, and there is $451 million outstanding, Thomson Reuters data showed. The company failed to pay a coupon on Oct 27.

“Detailed information regarding this corporate action event will be provided to holders who have balances of these securities on their safekeeping accounts with NSD,” the depository said.

Russia’s banking sector is under scrutiny after the central bank was forced to rescue B&N Bank and Otkritie, two of the country’s biggest private lenders, in recent months.

Oleg Yegorov, spokesman for Russian Standard Ltd, said the company was holding constructive talks with major holders of that Eurobond.

He added that the activities of the Russian Standard Ltd, a special purpose vehicle registered in Bermuda, had no connection to the bank’s business.

Russian Standard Bank is owned by Tariko, who also has interests in the vodka trade. It is Russia’s 28th largest bank by assets, according to the Interfax data. The bank declined to comment. (writing by Katya Golubkova; editing by Jason Neely and Andrew Heavens)

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