Finance & Credit Eurobond holders accept restructuring

Finance & Credit Bank announced its USD 100 mln Eurobond restructuring proposal was accepted by 100% of noteholders at a meeting yesterday. The bank offered to restructure 95% of the principal out four years to January 25, 2014 and to increase the coupon from 10.375% to 10.5%. Finance & Credit said it would pay 5% of the principal outright to noteholders after approval of the restructuring. The bank yesterday reiterated its expectation to finalize restructuring terms by the end of January. Finance & Credit was Ukraine’s #13 largest lender by assets, according to statistics from the National Bank of Ukraine as of October 1. Over the last three weeks, FICBUA’10 dropped in price from 71 to 65 percent of par, and its YTM spread to the sovereign yield curve widened from ~9.3 pp to 12.8 pp (accounting for FICBUA restructuring terms). Currently, new FICBUA’14’s YTM equals ~25.5% s.a.