05.03.2020, 13:44
J.P. Morgan Estimates Return Level from Default Bonds of Russian Standard
Source: OREANDA-NEWS
OREANDA-NEWS. Investors in default bonds of Russian Standard Ltd. Rustam Tariko can get a return of 20-45%, that is, from $ 86 to $ 202 million (the output amounted to $ 451 million), analysts J.P. Morgan calculated.
This is stated in the review of the assessment of collateral, which was prepared by bank analysts. Now the bonds are traded at 16% of the face value, in their estimation, the analysts proceed from the market value of the security deposit - 49% of the shares of Russian Standard Bank.
Company Russian Standard Finance S.A. (RSF), affiliated with Russian Standard Bank, in 2012–2013 placed two issues of Eurobonds worth $ 550 million. RSF allocated this money to issue subordinated loans to the bank, supplementing its capital. As a result of the restructuring of the issue in 2015, RSF bonds were replaced with securities of Russian Standard Ltd., a company registered in the British Virgin Islands.
The nominal volume of the issue fell to $ 451 million, but the holders received a payment of 18% of the face value of old bonds. Additionally, new securities were provided by 49% of Russian Standard Bank. The coupon rate under the new conditions was 13% per annum, the repayment was scheduled for 2022. In 2017, RSF defaulted on securities without paying a coupon.
This is stated in the review of the assessment of collateral, which was prepared by bank analysts. Now the bonds are traded at 16% of the face value, in their estimation, the analysts proceed from the market value of the security deposit - 49% of the shares of Russian Standard Bank.
Company Russian Standard Finance S.A. (RSF), affiliated with Russian Standard Bank, in 2012–2013 placed two issues of Eurobonds worth $ 550 million. RSF allocated this money to issue subordinated loans to the bank, supplementing its capital. As a result of the restructuring of the issue in 2015, RSF bonds were replaced with securities of Russian Standard Ltd., a company registered in the British Virgin Islands.
The nominal volume of the issue fell to $ 451 million, but the holders received a payment of 18% of the face value of old bonds. Additionally, new securities were provided by 49% of Russian Standard Bank. The coupon rate under the new conditions was 13% per annum, the repayment was scheduled for 2022. In 2017, RSF defaulted on securities without paying a coupon.
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