14:28 16.08.2018

PrivatBank in response to eurobond holders makes appeal to circumstances of issue, equities placement

2 min read
PrivatBank in response to eurobond holders makes appeal to circumstances of issue, equities placement

State-controlled PrivatBank (Kyiv) in response to arbitration proceedings initiated by the holders of eurobonds worth $175 million with maturity on February 28, 2018 and $200 million with maturity on January 23, 2018 has made an appeal to the circumstances of the issue and placement of the securities, according a report by Madison Pacific Trust Limited, a trustee for the eurobonds.

"One of the grounds on which PrivatBank states that it will seek to defend the claims brought against it by the new trustee on behalf of the noteholders relates to the circumstances in which the notes were issued and came to be purchased by at least some of the existing noteholders and whether the noteholders are related to the former owners of PrivatBank," according to the document available to Interfax-Ukraine.

"In light of the above, PrivatBank has requested that the new trustee circulate a notice to the noteholders to request that they each consider the information contained herein and provide details of their identity and (if different) the identity of the beneficial owners of the notes, the notional amount of their holding, and the dates on which they acquired their notes," the report says.

As reported, within the nationalization of PrivatBank, its obligations to a specially created British company (SPV), the issuer of the eurobonds, were subject to a bail-in procedure and were exchanged for the additional issued shares of the bank.

The matter concerns three issues of eurobonds worth $175 million at a rate of 10.875% repayable on February 28, 2018, $200 million at a rate of 10.25% repayable on January 23, 2018, of which $40 million was repaid in August 2016, and $220 million at a rate of 11% (subordinated debt bonds) with maturity in 2021.

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