Azerbaijan, Baku, Oct. 3 / Trend E. Kosolapova/
Kazakh BTA Bank reaches agreement on the financial terms of restructuring of its $11.2 billion financial indebtedness, the Bank reported on Wednesday.
"The Bank and broadly representative members of the steering committee of its creditors other than Nomura International, have agreed a non-binding term sheet for the restructuring of its $11.2 billion financial indebtedness that will help ensure the viability of the Bank," the bank said.
Due to indebtedness restructuring, the Bank will receive considerable debt relief from its creditors holding Senior Notes, Recovery Units and Original Issue Discount Notesand various classes of subordinated debt. Creditors will exchange their interests for a package of New Notes and cash. The New Notes will have a nominal amount of $750 million with a semi-annual coupon of 5.5 percent per year and a bullet maturity in 2022. In exchange for their notes, Senior Noteholders will receive $957.8 million of cash and $88.8 million of New Notes, Recovery Unit holders will receive $660.2 million of cash and $61.2 million of New Notes and Original Issue Discount Noteholders will receive $600 million of New Notes.
Moreover, the Bank has agreed with its Revolving Committed Trade Finance Facility lenders on terms for the RCTFF. These terms provide for an extension of the maturity of the $348.2 million facility until 31 December 2015. Additionally, the RCTFF lenders have agreed to modify the eligibility criteria to facilitate increased utilization of the RCTFF.
This will enable BTA to finance new and profitable lending in accordance with its business plan. A summary of the new terms for the RCTFF is included in the letter posted on the Bank's website.
"The controlling shareholder of the Bank, Kazakh Sovereign Wealth Fund Samruk-Kazyna, will support the transaction through a combination of the conversion of deposits into equity resulting in an increase in its shareholding in the Bank, an increase in the coupon on its bonds held as an asset by the Bank and through a $1.592 billion interest-bearing loan subordinated to the New Notes," the Bank said.
BTA Bank is one of the largest Kazakh banks.