The largest Ukrainian bank PrivatBank (Dnipropetrovsk) has entered into an agreement to buy loan participation notes (LPN) worth $70 million issued by subsidiary UK SPV Credit Finance Plc by its shareholder without resource at a coupon of 5.799% at par for the sole purpose of funding a subordinated loan to PrivatBank, the bank has reported on its website.

The bank said that the purpose of the notes and the subordinated loan agreement is to increase the capital of PrivatBank with the support of its shareholders while at the same time further aligning their interests with the interests of other stakeholders.

PrivatBank was founded in 1992. The bank was the largest one among the 127 operating banks in the country on July 1, 2015 by total assets (UAH 240.01 billion), according to the National Bank of Ukraine.