OREANDA-NEWS. June 23, 2010. AMT BANK successfully repaid part of principal amount outstanding under the loan participation notes (LPN) issued by Slavinvest Finance S.A.. USD 12.813 mln were redeemed, which totals 22.5% of the amount outstanding in the market, as well as the Bank paid quarterly coupon in the amount of USD 1.265 mln. The repayment was made in full accordance to the loan repayment schedule, which was approved in January by the meeting of holders of notes issued by Slavinvest Finance S.A., reported the press-centre of AMT BANK. 

It should be reminded that LPNs of AMT BANK were issued by the special purpose vehicle Slavinvest Finance S.A. and totaled USD 100 mln in December, 2006 with the coupon rate being 9.875%. In 2009 – 2010 AMT BANK repurchased and repaid part of the LPNs in the amount of about USD 43 mln. In January, 2010 investors approved the Bank’s proposal to change the LPN repayment schedule. The agreed-on schedule suggests, in particular, repayment of the loan in five tranches prior to December 21, 2011 and quarterly payment of accrued coupon.

On January 15, 2010 AMT BANK repaid the first planned tranche in the amount of 10% of the LPN amount outstanding in the market, as well as it paid accrued interest and a lumpsum bonus to investors, who voted for prolongation of the loan. The total amount of payments by the Bank to investors reached USD 8.7 mln in January. The remaining three tranches under LPNs issued by Slavinvest Finance S.A. will be repaid with 6 months intervals.

As of June 22, 2010, upon the repayment, the amount of outstanding LPNs issued by Slavinvest Finance S.A. is about USD 38.437 mln. The nominal value of the LPNs is 67.5%. The regular repayment subject to the schedule is to be made in December, 2010.

At the present time securities are traded in the market at the price of up to 80% of the nominal value. As a comparison, in December, 2009 the price of an LPN totaled about 30%.

- The LPN price growth is caused by, among other things, strict performance of obligations by the Bank, which, in turn, confirms the reliable reputation of the Bank in the external borrowings market and creates investors’ trust, - says Konstantin Vorobyov, Executive Director at AMT BANK.