Alfa Bank Ukraine completes Eurobond swap

Alfa Bank Ukraine completed the exchange of its 2009, 2010 and 2011 Eurobonds for new securities totaling USD 840.6 mln, Ukraine Issuance, the firm through which the new Eurobonds will be issued, said in a statement yesterday. Alfa’s new notes issued as a result of the offers will form separate series until the first interest payment date (Oct. 30, 2009), after which they will be consolidated into a single series. The principal of the series is: 2009 notes – USD 268.0 mln, 2010 notes – USD 387.3 mln, and 2011 notes – USD 185.4 mln. The new notes have an interest rate of 13.00%. Andriy Gostik: In our view, based on this and taking into account the issuer’s inherent risks, a fair YTM for the 2012 notes should be around 40%, corresponding to a price of ~68. We recommend buying into Alfa’s new Eurobonds below this level.