Alfa Bank Ukraine concludes USD 250 mln 2011 Eurobond swap
20 July 2009
Interfax reported on Friday that Alfa Bank Ukraine Eurobond holders agreed to swap its three-year USD 250 mln Eurobonds maturing in August 2011 with a coupon of 12% for Eurobonds due in July 2012 with a coupon of 13%, with partial cash repayment during the swap. The new Eurobonds, in the amount of USD 185 mln, will be issued through Ukraine Issuance on July 30, 2009. They will be repaid in equal parts beginning in the second year of circulation and have a quarterly coupon. Alfa Bank Ukraine said its 2009/2010 Eurobond holders will meet to discuss a similar swap agreement on July 23. Andrii Parkhomenko: We see the news as positive for Alfa Bank, as the swap will alleviate the bank’s debt burden. Alfa Bank’s Eurobond restructuring is the first on the market, and could set a precedent for the other banks that have Eurobonds maturing soon.
