Holders of eurobonds of nationalized PrivatBank (Dnipro), following the example of U.S. Cargill, demand to recompense their investment in the bank's securities.

The letter, a copy of which has been sent to Interfax-Ukraine, was sent by the advisor of the noteholders' committee – Dechert LLP law firm (Britain) – to PrivatBank Board Chairman Oleksandr Shlapak, Governor of the National Bank of Ukraine (NBU) Valeriya Gontareva and Head of the Individuals Deposit Guarantee Fund Kostiantyn Vorushylin on January 27, 2017.

The law firm paid attention to the unequal attitude of the bank to liabilities to notehoolders and liabilities to Cargill that were also converted into the bank's shareholder capital during its nationalization.

The noteholders believe that the bank and Ukrainian authorities admitted that the liabilities to Cargill converted into the bank's shareholder capital were unlawful and were repaid. Legislation does not have grounds for interpreting liabilities to Cargill and liabilitites to the noteholders in a different way, the law firm said.

The firm believes that the bank and Ukrainian authorities are to admit the implementation of liabilities to the noteholders meeting the conditions of the securities issue.

Violation of these liabilities allows the noteholders to demand compensation of their investment in court, including in Ukriane, Dechert said.

The law firm said that the noteholders on December 20, 2016 and January 10, 2017 asked for explanations from the bank regarding the forced capitalization of the debt on the securities. The response has not been sent.

Dechert said that neither the firm nor its clients are persons affiliated with the bank.

The press service of PrivatBank told Interfax-Ukraine that the transactions to capitalize the bank's liabilities were conducted by the Deposit Guarantee Fund and NBU. They confirmed that they are ready to protect their position.