×

Kazakh BTA dlr bond jumps on news of debt restructuring

LONDON, Oct 3 (Reuters) - Kazakh BTA bank's $2.1 billion 2018 bond jumped at least 5 cents on the dollar on Wednesday after the bank signed a preliminary restructuring agreement for $11.2 billion in debt, broking sources said.

Kazakhstan's third-biggest bank, which is majority owned by Kazakh sovereign wealth fund Samruk-Kazyna, went into default on the debt earlier this year. Samruk-Kazyna did not guarantee the bank's debt.

The bond rose to pre-default highs of 32 cents on the dollar, according to one broking source, while another said it went as high as 36 cents.

Samruk-Kazyna agreed to convert its deposits into equity and issue a $1.592 billion interest-bearing subordinated loan to BTA, the bank said in a statement.

(Reporting by Carolyn Cohn)

((carolyn.cohn@reuters.com; 44 207 542 6320; Reuters Messaging: carolyn.cohn.thomsonreuters.com@reuters.net))

Keywords: KAZAKHSTAN BTA/BOND