Credit Suisse Sells Ukraine’s Donetsk Railways Debt Alternative

DONETSK, Ukraine -- A unit of Credit Suisse Group AG, Switzerland’s second-biggest bank, issued 58.6 million hryvnia ($7.4 million) of notes that give investors an alternative to buying the debt of Ukraine’s Donetsk Railways.

Credit Suisse Nassau’s one-year notes are linked to 24 percent bonds due August 2011 sold by Donetsk Railways, according to data compiled by Bloomberg.

The notes have a so- called reverse-currency feature that allows them to pay interest in dollars, the data show.

Credit Suisse issued the credit-linked notes at a price of 108.06 percent of face value. Such securities typically give investors the chance to take on the risk of a bond they couldn’t otherwise buy because of regulations, cost or other reasons.

Josephine Lee, a London-based spokeswoman for Credit Suisse, declined to comment.

Credit Suisse Nassau is a private banking unit of the Zurich-based parent, with branches in the Bahamian capital.

The deal is the third hryvnia issue by Credit Suisse in the past three years, Bloomberg data show.

Source: Bloomberg