business and economy
Astana Finance plans to cut debt by $650 billion
(SRI) - Astana Finance plans to reduce its international debt by $650 million, in part by issuing new shares to give its creditors a majority stake in the lender, Reuters reported on Monday citing Astana Finance CEO Elmira Ibatullina.
“As for foreign creditors … we are talking about a 65 percent debt cut,” Ibatullina said in a briefing. In exchange, foreign creditors would receive a new seven-year Eurobond and up to 59 percent of shares in Astana Finance. Ibatullina said all existing equity, except for a 25 percent stake owned by state welfare fund Samruk-Kazyna, would be cancelled.
Astana Finance’s total debt is $1.7 billion, including trade finance and domestic debt, which will not be discounted under the deal.
According to Ibatullina, Astana Finance would pass its trade finance debt to a leasing subsidiary that will repay it as long as it gets fresh loans from foreign export credit agencies.
Astana Finance signed a non-binding memorandum with its creditors’ committee earlier this month, which proposed issuing new Eurobonds and shares in exchange for existing debt. Astana Finance’s creditors’ committee comprises of Nomura International Plc, Banco Finantia SA, Franklin Templeton Investment Management Limited, Landesbank Berlin AG, Merrill Lynch International and Portland Worldwide Investments Ltd.
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ASTANA FINANCE
ISSUIBG NEW SHARES FOR CREDITORS
ALSO THE 65PCT HAIR/CUT IS CERTAINLY
BETTER THAN BTA..ALLIANCE
WE HOPE KAZKH SHALL NOT HAVE ANYMORE BANKS WITH HAIRCTS AS IMPROVING OIL PRICES SHUD BE WITHIN THE S/K RANGE SUPPORT
RGDS SAM
INDEPENDENT VIKINGS RESEARCH