UPDATE 1-AIB to bolster capital with inaugural AT1

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By Alice Gledhill

LONDON, Nov 25 (IFR) - Allied Irish Banks is hoping to capitalise on the success of a recent Tier 2 deal, mandating banks for an inaugural Additional Tier 1 bond that will further strengthen its balance sheet.

The bank is looking to raise 500m from the transaction, which could emerge as soon as Thursday.

The Irish lender sold 750m of Tier 2 bonds last Thursday on books of more than 5bn from some 310 accounts.

While the issuer is not obliged to raise the capital before year-end, it is seeking to build on the strong momentum of that Tier 2 trade after meeting investors on a recent roadshow.

"The market is good and the Tier 2 worked well. As people were giving orders on the Tier 2 they were reversing into the Additional Tier 1, so we know where investors want to see it come," said one lead manager.

Both bonds form part of the Irish lender's capital plan agreed with regulators.

The response to the Tier 2 served as a strong endorsement of the positive trajectory of AIB's credit story, its chief financial officer Mark Bourke said.

That bond, a 10-year non-call five-year deal, has performed well since pricing and was bid at mid-swaps plus 380bp on Wednesday morning, according to Eikon data, having priced at plus 395bp.

AIB said last Tuesday that it had generated more capital, reduced its bad loans and increased its net interest margin in the third quarter. Its fully loaded Common Equity Tier 1 ratio had improved by 90bp in the quarter to 9.2%.

The new Additional Tier 1 bonds will be temporarily written down if the bank's CET1 ratio falls below 7%.

The Irish lender won regulatory approval earlier in November to return 1.7bn of bailout funds, beginning the process of repaying the 21bn it received during the crisis. In total, the state will receive close to 4bn ahead of a potential initial public offering.

Deutsche Bank and Morgan Stanley are joint structuring advisers, together with Bank of America Merrill Lynch, Davy, Goodbody and HSBC as joint leads. (Reporting by Alice Gledhill, Editing by Helene Durand, Julian Baker)

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Brazil's OAS creditors pass bankruptcy plan, Invepar deal, source says

SAO PAULO Dec 18 Creditors of Grupo OAS , the Brazilian engineering firm under creditor protection, agreed to sell a 24.4 percent stake in infrastructure company Invepar to Brookfield Asset Management Inc for at least 1.35 billion reais ($346 million), a source with knowledge of the matter said.

At a meeting that ended early Friday, creditors passed a restructuring plan calling for bondholders and banks to get 20 percent of their debt repaid in almost 20 years, the source said. Creditors also approved the sale of Grupo OAS's interests in a waste management solutions firm and an oil and gas rig building unit, the source added.

The creditors agreed to sell the Invepar stake if Brookfield drops a plan to extend OAS a debtor-in-possession loan worth 800 million reais, said the source, who requested anonymity because the transaction remains private.

Reuters on Nov. 10 reported the Invepar sale as part of OAS's efforts to emerge from bankruptcy. OAS Investimentos, the unit that managed the Invepar stake for OAS, hoped to fetch at least 2.2 billion reais for the asset, Reuters reported in August.

Under the restructuring plan, OAS was authorized by creditors to keep 350 million reais from the Invepar stake sale to finance operations, the source said.

The sale will take place at an auction next month, and Brookfield secured the right to top any bid from rival parties interested in the Invepar stake, the source added. The bankruptcy plan, as well as the Invepar sale, requires approval from bankruptcy court and three major pension funds that are OAS's partners in Invepar.

Invepar is formally known as Investimentos e Participações em Infraestrutura SA.

In March, Grupo OAS filed for bankruptcy protection in a São Paulo court to facilitate the restructuring of 8 billion reais in debt owed by nine units. The bankruptcy petition came after Grupo OAS struggled with the impact of a corruption probe at state-controlled oil producer Petróleo Brasileiro SA and other state companies that undercut access to financing.

($1 = 3.8990 Brazilian reais) (Reporting by Guillermo Parra-Bernal and Tatiana Bautzer; Editing by Lisa Von Ahn)

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BRIEF-Transaero appeals Rosaviatsiya's order revoking its air operator certificate - court materials

Dec 24 (Reuters) -

* Transaero Airlines has filed a claim to dismiss order of the Federal Air Transport Agency (Rosaviatsiya) revoking its air operator certificate, according to court materials

* The court said the claim has been submitted in compliance with the law and initiated the proceedings

* The preliminary hearing has been set for Jan. 27

Source text: bit.ly/1YCURcy

Further company coverage:

(Gdynia Newsroom)

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