Alfa Bank redeems USD 100 mln Eurobonds

Alfa Bank Ukraine said yesterday in a press release that it redeemed its USD 100 mln Eurobond. The payment falls within the grace period provided in its agreement (to May 11), after it failed to repay the issue on May 4, according to the bank. On Tuesday, Alfa Bank issued a statement informing bondholders that it was unable to redeem the issue on May 4, de facto recognizing it is in technical default. The bank cited its inability to purchase a sufficient amount of US dollars on the Ukraine interbank market and named NBU restrictions on F/X purchases as a culprit. In response, the National Bank of Ukraine issued a statement yesterday accusing Alfa of resorting to an artificial excuse in order to duck its external debt obligations. The NBU said that Alfa Bank’s F/X holdings exceeded the amount due on its Eurobonds.