business and economy
Temirbank proposes 80-percent haircuts in restructuring
(SRI) - Temirbank, the fourth Kazakh lender to default on its debt this year, unveiled its restructuring plan on Monday, proposing haircuts of approximately 80 percent to international creditors.
The bank proposed cash-only repayments equivalent to 19.7 percent of the principal outstanding to the holders of a $300-million Eurobond due in November 2014 and 20.0264 percent to holders of $500-million Eurobond due in May 2014.
Temirbank plans to repay domestic unsecured bond issues in full, however only after after a significant extension of maturity dates as well as reduction of interest rates. Holders of secured domestic bonds will receive new secured notes in respect of 25 percent of the relevant principal amount of the existing instrument, with the balance being converted into unsecured subordinated notes.
Temirbank will also cut its trade finance liability to U.S.-based CoBank ACB by 37.3 percent, with the balance remaining outstanding on current terms.
Samruk-Kazyna, which already controls the bank through BTA Bank, pledged it will recapitalize Temirbank once the debt restructuring is completed.
The bank will hold a creditors meeting on December 23 to approved the debt restructuring. The Kazakh Financial Supervision Agency (FSA) gave Temirbank until December 30 to get an approval for debt restructuring plan from its creditors.
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TEMIRBANK
STRANGE HAPPENINGS PAYING 20PCT
FOREIGN USD DLL BOND HLDRS BUT
LOCAL BONDS IN FULL BY RESTRUCHRING CONDITIONS
WHY ON EARTH THEY TREAT DIFFERENTLY
NOBODY WILL WISH TO INVEST IN KAZAKHSTAN
WITH PLENTY OF ROADSHOWS IN THE PAST..TREATMENTS SHUD IF NOT SAME BUT SHUD/BE SOMEWHAT EQUAL
SAM/SATHIT
INVESTMENTS GURU
VIKINGS RESEARCH
I hate to say I told you so, but go to kzbonds.com and you will see predictions made many months ago. Future investors would be wise to remember these events. “Image is nothing” boasted the Central Bank Governor. Let’s see.
Creditors should take the line of Alliance Bank and reject these biased debt restructurings. This country CAN afford to pay - and it will HAVE to pay if creditors hold together.