CIS Credit Monitor: Alliance Bank

Alliance Bank (D/C/C) publishes debt restructuring plan agreed with Creditors’ Steering Committee

On Friday, Alliance Bank published the terms and conditions of the bank’s debt restructuring and recapitalisation plan. The proposed options included in the document are mainly in line with the Memorandum of Understanding issued last July. These include the recapitalisation plan of the bank through the creation of $3.4bn additional equity, the $2.5bn debt write-off and the effective control of the institution by Samruk Kazyna. Earlier last week, the Term Sheet was approved by the bank, the Creditors’ Steering Committee and Samruk Kazyna. It is widely expected that the proposal will be signed by the bank’s financial creditors since the weak financial position of Alliance Bank could trigger the liquidation of the Kazakh institution should an agreement fail to be reached.