Ursa to Buy Back $532M Bond Issue

Ursa Bank on Friday announced a buyback of a 400 million euro ($532 million) bond issue, and a trade source said the bank was offering 75 percent of face value.

The bank may from time to time repurchase through open-market purchases or private transactions up to all of the outstanding 7 percent Loan Participation Notes due May 2010, Ursa said in a statement.

Emerging markets' corporate debt prices have plunged, giving borrowers the chance to save cash by repurchasing the debt rather than redeeming it at nominal value. "A trader at Ursa Bank has offered to purchase LPN 2010 for 75 percent of its nominal price," said a trader at a state-controlled bank.

MDM-Bank and Ursa Bank said in December that they decided to merge their holdings, creating Russia's second-largest privately owned bank.