State-owned Ukreximbank (Kyiv) is placing 10-year $100 million subordinated eurobonds at 9.95% per annum, a source in banking circles has told Interfax.

Another source told Interfax-Ukraine that the bonds will provide for the possibility of early redemption in five years and the deal is scheduled to close next week.

J.P. Morgan and Morgan Stanley act as the organizers of the placement. The immediate issuer is a special purpose vehicle (SPV) of Ukreximbank – Biz Finance Plc (Great Britain), through which the bank's eurobonds were previously issued.

As reported, Ukreximbank this week holds a series of meetings with investors in Europe. A road show was planned in London, Zurich and Frankfurt.

The last time the bank entered the loan market in March 2018, when it placed UAH 4.051 billion eurobonds (loan participation notes, LPN) with a coupon rate of 16.5% per annum and maturity in March 2021.

Currently, three issues of Ukreximbank loan participation notes in U.S. dollars restructured in 2015 due in 2022, 2023 and 2024 are on the market. For each issue, an amortization repayment mechanism is provided.

Ukreximbank, the sole owner of which is the state, was created in 1992. According to the National Bank of Ukraine, as of July 1, 2019, in terms of total assets (UAH 221.300 billion), the bank was third among 76 banks operating in the country.