January 25, 2019 | Cbonds
|According to the annual summary statistics of bond defaults, the volume of unfulfilled obligations among Russian corporate issuers in 2018 amounted to 63.829 billion rubles, which is 82% more than the last year's indicator (35.009 billion rubles) and 49% less than the indicator of the peak year of 2009 (125.355 billion rubles). The total volume of unfulfilled obligations to the volume of corporate bonds of Russian issuers was 0.53% – this is 23 bp more than the last year's result. In the recession year of 2009, the given ratio was 4.83%. |
Of the 105 outstanding obligations – 85 account for defaults on coupon (143.685 million rubles) and 3 – for technical defaults on coupon (0.848 million rubles). Moreover, at the end of the year, 11 outstanding offers (33.047 billion rubles), 6 defaults on payment (15.565 billion rubles, including defaults on payment of deprecation of face value) were registered.
Over the past year, a number of large companies were not able to make payments to investors: Domashnie Dengi (Home Money), SamaraTransneft-Terminal, Sibirsky Gostinets (Siberian Gift), O1 Group Finance, and KIT Finance Capital – the defaults of these issuers drew a response in the financial market. To date, only three of the listed companies have restructured their obligations.
KIT Finance Capital, which defaulted on 4 series, prematurely redeemed all the outstanding issues. The holders of the bonds of the KIT Finance subsidiary company decided to accept the terms of the novation, which implies the final fulfillment of obligations no later than the end of 2027.
Domashine Dengi has one issue in circulation of 1.188 billion rubles – redemption is scheduled for 2022. Despite restructuring, obligations related to the issue were not fulfilled again.
Investors of the Sibirsky Gostinets of series BO-001R-01, one of the two issues of the company in circulation, agreed to the terms of the novation in January of this year. The issue of 150 million is planned to be converted into preferred shares during the first quarter of 2019. Bonds of series BO-002R-01 in the amount of 869.4 million USD (by default) must be redeemed in 2020, while the payment of the 2nd coupon is planned in February of this year. The obligations for this issue have also been restructured.
Among the companies that could not redeem the issued bonds in 2018 were FinInvest, Domashine Dengi, TPGK-Finance, INVESTPRO, and DVMP (Fesco). Most of them are financial institutions; the only exception was the representative of the transport sector – DVMP (Far-Eastern Shipping Company previously known as Fesco). This company made the largest default over the past year on repayment – by 5.002 billion rubles.
You can find more details on the default statistics in the corresponding section.