UNIAN
State-owned bank Oschadbank has agreed with the special committee of creditors to extend payments under its external debt maturing in 2016, 2017 and 2018 worth $1.3 billion for seven years, to 2023, 2024 and 2025, respectively, the press office of the bank has reported.
Earlier, the Ministry of Finance announced the successful completion of negotiations between the state-owned bank Oschadbank and the creditors' committee on restructuring bank bonds worth $1.3 billion, without specifying details of the agreements.
According to the bank, the special creditors committee, which includes the holders of approximately 54.3% of the bank’s total outstanding external debt at nominal value, approved the conversion of bonds for $700 million with a yield of 8.25% per annum and maturing in 2016, bonds for $500 million with a yield of 8.875% per annum and maturing in 2018, as well as the subordinated loan of $100 million maturing in 2017.
The bank stated that according to the agreements, the creditors will receive new bonds with adjusted terms for the debt. Debt payments on bonds maturing in 2016 will be extended for seven years - until March 10, 2023. The coupon rate will be increased to 9.375% per annum, and the debt will be repaid gradually: 60% of the principal amount in March 10, 2019, and the remaining amount in the form of eight equal semi-annual payments made from September 10, 2019 to March 10, 2023.
Payments on the loan maturing in 2017 are also extended for seven years - until January 19, 2024. The coupon rate will be increased to 6-month LIBOR rate plus 6.875% per annum, and the debt will be repaid gradually: 50% of the principal amount by January 19 , 2020, and the remainder in eight equal semi-annual payments made from July 19, 2020 to January 19, 2024.