Bank Nadra restructures another Eurobond

Holders of Bank Nadra’s USD 60 mln LPNs, due in 2018, approved restructuring of the notes, stipulating a 50% write-down, setting a fixed 2.5% coupon rate vs. floating rate LIBOR+5 pp (currently close to 5.9%), news agencies reported yesterday. Apparently, most of the notes are already owned by a potential private equity investor in the bank or related parties, who were ready to accept the terms. Earlier this summer Nadra completed restructuring of its USD 175 mln Eurobonds due in 2010, with a 47.1% haircut, 7-year prolongation, setting an 8% annual coupon and sinkability provision and finished restructuring of other foreign debt (total USD 877 mln, including Eurobonds), not disclosing the terms and conditions of the latter. Bank Nadra is still struggling to get equity support from either the government or a private investor as the International Monetary Fund opposes the state taking on too much risk related to the bank, while the potential private investor is reportedly not ready to take on all the risks themselves either.