Borets defaults on $350 million 6% notes amid Russia restrictions

By Mary-Katherine Stinson

Lexington, Ky., Nov. 17 – United Arab Emirates’ Borets Finance DAC has notified the trustee of its $350 million 6% guaranteed notes due 2026 (ISINs: XS2230649225, US09973BAB53) that an event of default has occurred despite the group having sufficient funds to fulfill its obligations under the notes, according to a company announcement on Thursday.

The issuer has not paid the outstanding amount of the principal and interest due on Sept. 17 within the applicable grace period ending Nov. 16 because of the sanctions and restrictions imposed relating to the Russian invasion of Ukraine.

The group stated in the press release that it is currently taking steps to ensure that certain applicable Russian legal requirements are complied with in connection with the making of payments and discharging obligations under the notes.

It expects that the interest due on the notes will be paid within the next four weeks.

Russia-focused Borets Finance is a subsidiary of Borets International Ltd., which makes electrical submersible pumps for the oil and gas industry and has its global headquarters in Dubai.

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