Russian president Vladimir Putin: Russian invasion of Ukraine has resulted in default on bonds listed in Dublin. Photograph: Kirill Kallinikov/Sputnik/AFPThe two Russian bonds at the centre this week of the country’s first foreign default since the Bolshevik Revolution more than a century ago were sold to investors using bond prospectuses that were approved by the Central Bank of Ireland.
The 2021 prospectus for a bond that is due to mature in 2036 also outlined in detail restrictions at the time on the import or export of certain products, technology and services. Prospectuses are used for marketing as well as disclosures to prospective investors. Ratings agency Moody’s said the missed payments – following a 30-day period of grace after the interest fell due in late May – constituted a default under its definition, adding that the Kremlin would also likely default on future bond payments.
The bonds were not traded on the Irish exchange before they were delisted, but over the counter in securities broker-dealer hubs such as London and Frankfurt. Still, Euronext Dublin and an ecosystem of professional services firms in the capital earn lucrative fees from the bond listings line of work. As such, Dublin has played its role in facilitating Mr Putin’s government in accessing global debt markets over the years.