OREANDA-NEWS. December 03, 2009. First Ukrainian International Bank asked holders of its USD 275 mln Eurobonds to agree to restructuring terms at a meeting of note holders called on December 15, according to local news reports. The bank proposed extending the maturity of the notes from February 16, 2010 to December 31, 2014 and to increase the coupon from 9.75% paid semi-annually to 11.00% paid quarterly. FUIB said it would pay 8% of the remaining principal on the bonds to noteholders if they accept restructuring by December 11. FUIB said the terms must be approved by 75% of bondholders. FUIB was Ukraine’s #14 largest bank by assets as of October 1, according to the National Bank of Ukraine.

Concorde Capital: The current price of FIUKR’10 of 73 implies a YTM for the new bonds of ~22.4%, in line with the 20.0-22.5% YTM of the more liquid notes of Privatbank and Alfa Bank Ukraine (both maturing in 2012). Apart from its Eurobonds, FUIB has overdue liabilities of USD 240 mln, which it is trying to restructure together with the Eurobonds, USD 260 due to the NBU at end-2009-early-2010 and 10% of bank’s assets were funded with short-term interbank loans as end-3Q09 (USD 210 mln). Given FUIB’s weak liquidity position, we deem the restructuring offer as not very attractive to investors.