VAB Bank offers new restructuring terms for its failed Eurobond

VAB Bank (VABANK) has offered new restructuring terms for its Eurobond that was due on June 14, after bondholders failed to approve the bank’s previous offerat their June 2 meeting. This time, the bank is again offering the final maturity of the Eurobond on June 2019, though it’s amending the repayment schedule of the principal. In particular, it is suggesting that 75% of the principal amount of the bond will be repaid in quarterly installments of 5% each between June 14, 2015 and December 14, 2018. 10% of par value is suggested to be repaid on March 14 and the remaining 15% on June 14, 2019. The bank also wants to get an option to repay the latest part of its Eurobond earlier.

The bank suggested that bondholders agree on a 0% coupon rate for the last coupon period (March 14 to June 14, 2014) and confirmed the coupon rates of its previous offer (down to 9.0% from 10.5% between June 2014 and June 2015, and up to 10.9% afterwards). VAB Bank also increased a consent fee from a previous 0.5% to 2.625%. The consent fee will be paid to those agreeing to the new restructuring terms by June 20. A new bondholder meeting will be held on July 1.