Finance & Credit Bank to restructure USD 100 mln 2010 Eurobonds

Finance & Credit Bank plans to restructure its USD 100 mln Eurobonds maturing in 2010, the bank said in a press release this morning, according to various news reports. The bank is asking bondholders for unspecified changes to Eurobond terms. Finance & Credit Bank was Ukraine’s #14 largest bank by assets as of April 1, according to the National Bank of Ukraine. Oleksandr Klymchuk: The restructuring announcement comes as no surprise to the market given the difficult situation with bank liquidity and asset quality. At the moment the Finance & Credit bonds are traded at a yield of 400%, the highest yield in the banking sector and on par with embattled Nadra Bank. However, we believe that FICBUA will offer much better restructuring terms to its noteholders than Nadra as it has stronger fundamentals that are reported to have improved recently.