PrivatBank has sent a memorandum to obtain the consent of the holders of eurobonds maturing in autumn 2015 and in 2016 to postpone the repayment date for two series of eurobonds issued by Privatbank. In particular, the Memorandum proposes to defer the repayment of eurobonds worth $200 million maturing in autumn 2015 (the issuer is UK SPV CREDIT FINANCE PLC) until 2018. It is proposed to bring the repayment date for eurobonds worth$150 million maturing in 2016 (the issuer ICBC STANDARD BANK PLC) forward until 2021, the press-office of the bank reports.
One of the provisions of the Privatbank’s agreement stipulates that the interest rate on eurobonds, if approved, will be increased upon consent of the bondholders. In the event of their consent to postpone the maturity of eurobonds issued by Privatbank, accepting their changed payment terms, they will be paid a commission of $20 per $1,000 eurobonds.
The procedure for extension of maturity of eurobonds was triggered by PrivatBank considering the economic situation in Ukraine and NBU’s requirements for Ukrainian banks that should take measures to improve their capital ratio, as well as lessen the pressure on the foreign exchange market. Formerly, similar decisions have been taken by state-owned banks - Ukreximbank and Oschadbank.
