Russia’s Khanty-Mansiysk Bank gets holder consents to amend 10% notes

By Susanna Moon

Chicago, Feb. 8 – Khanty-Mansiysk Bank Otkritie said holders approved amendments to the $200 million 10% loan participation notes due 2023 issued by BKM Finance Ltd.

The written resolution was approved on Jan. 28, according to a company notice to noteholders.

The company said on Jan. 26 that it was asking for consents to approve the following:

• Amendment to the subordinated loan agreement to replace references to 5.5% in the definition of write-down exchange event, consequences of a write-down measure and effectiveness of write-down measures and cancellation of payments for any write-down exchange event beginning Jan. 1 with references to 5.125%; and

• Interest payable: For the interest period from June 18, 2015 to Dec. 18 the amount of interest payable under the subordinated loan and the notes was calculated and paid at the rate of 9.15% from June 18, 2015 to but excluding Aug. 27, 2015 and at the rate of 10% from Aug. 27, 2015 to but excluding Dec. 18. Noteholders were asked to confirm that the amount of interest paid on Dec. 18 constitutes good discharge of the borrower's obligations for the subordinated loan and the issuer's obligations for the notes for the interest payment due on Dec. 18.

The notes were issued on a limited recourse basis for the purpose of funding a subordinated loan to Khanty-Mansiysk Bank Otkritie.

Noteholders also were asked to waive and authorize, direct, empower and request the trustee to waive all rights, claims, remedies and objections that they may have against the issuer or the borrower in connection with the payment or calculation of the interest, the release noted.

Deutsche International Corporate Services (Ireland) Ltd. (corporate.services@db.com) is the company secretary for BKM Finance.

The company, formerly Bank of Khanty-Mansiysk, is a lender based in Khanty-Mansiysk, Russia.

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