OFSI General Licences

The Office of Financial Sanctions Implementation, OFSI, of the HM Treasury has issued a new General License (INT/2023/2824812) in connection with the sanction measures imposed on the Russian Federation (SI 2019/855). Specifically, the Office is authorizing „transactions related to Bond amendments and restructurings for non-Designated Persons“.
In detail, as part of this license an issuer can modify the terms of a bond, including a restructuring, for non-designated (legal) persons, if it believes that some of the bondholders may be sanctioned persons, entities, or bodies provided that
1. no funds are made available to the designated parties in the modification process and that
2. any potential proceeds from the bonds to designated persons are frozen until the sanction is removed.
Additionally, a UK (legal) person (including financial institutions) „may take any steps necessary to effect a bond restructuring or amendment“ subject to the same conditions.
The license also requires the reporting of any transactions by issuers under the license which must take place within 14 days following the transactions and include information to evidence that the above noted conditions (the prevention of making available of funds to designated parties and the prevention of payment of interest and other proceeds relating to a bond) are met.