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Weekly Lists
December 1, 2017 www.intellinews.com I Page 28
bne:Credit Russian Standard
defaults on Eurobonds
Leading consumer credit bank Russian Standard (Russky Standart) bank, owned by Rustam Tariko, defaulted on $451mn worth of Eurobonds, London's branch of Citibank announced in a document quoted by Vedomosti on November 29.
Russian Standard Ltd issued Eurobonds in 2015 as part of restruc- ture of two previous issues of $350mnn and $200mn maturing in 2020 and 2024, respectively. The bondholders received 18% of the older bonds' nominal value in cash, and new bonds for the remain- der were issued with a coupon of 13%, maturing in 2022 and backed only by 49% in Russian Standard bank.
Now Tariko is facing the loss of that 49% stake in his bank, while bondholders may also demand seats on the company's board and initiate an audit.
The risk of a default became real on October 30, when the bank did not pay a coupon due then, confirming the fears of bondholders that it was in trouble but received no explanations from the bank.
Ukraine is going to issue $2bn on debt markets in 2018, the country's Finance Minister Oleksandr Danylyuk told Reuters in an interview.
On September 18, Ukraine placed $3bn in 15-year Eurobonds at 7.375% per annum, after Kyiv mandated JP Morgan, BNP Paribas and Goldman Sachs as bookrunners for its new Eurobonds issue. The deal has become a first market placement for the country since the victory of the popular uprising in February 2014.
"We will not rush to the market, but we have a good story to tell to investors," he said. The money would help meet Ukraine's debt repayments and International Monetary Fund (IMF) money would go towards building up currency reserves.
An insufficient response from Turkey's central bank to persistent high inflation would be an immediate concern in relation to Turkey's sovereign debt rating, a senior official at Standard & Poor’s told Reuters on November 29.
“We remain concerned that the weak lira will continue to feed into higher inflation which the central bank has yet to fight more decisively,” S&P associate director Felix Winnekens said.
Ukraine seeks to rise $2bn via Eurobonds in 2018
High inflation a concern for Turkey, says S&P
S&P’s credit rating for Turkey stands at BB with a negative outlook.