Russia’s Bank Otkritie issues write-down on loan participation notes

By Caroline Salls

Pittsburgh, Oct. 10 – Subordinated loan agreement borrower PJSC Bank Otkritie Financial Corp. issued a write-down (exchange) event notice to BKM Finance DAC, the issuer of $200 million in 15% loan participation notes due 2023, according to a BKM news release.

Specifically, the notice said that the base capital adequacy ratio was less than 5.125% for six or more banking days during a consecutive 30-banking day period, triggering the write-down event on Sept. 26.

A mandatory measures effective date will occur on Nov. 8.

According to the release, Otkritie elected not to complete an exchange under the loan agreement.

As part of the write-down event, Otkritie’s obligations to repay the principal amount of the loan and to pay penalties for non-performance of obligations will be terminated in full or in part, and any unpaid interest will not be paid and will not accumulate.

If a write-down event has occurred as a result of any losses incurred by the borrower, any write-down measures may only be applied by the borrower after undistributed profit, reserve fund and other sources of base capital have been exhausted to absorb losses.

The financial company is based in Moscow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.