The state-owned Ukreximbank has offered to buy back its loan participation notes (LPN) maturing in 2022 and 2025 for a total amount of up to $300 million using available funds, according to a statement from Biz Finance Plc, through which the notes were issued, on the Irish Stock Exchange.

The borrower is currently seeking to optimize its portfolio of obligations and reduce the cost of its debt, Biz Finance Plc in the offer.

The notes repurchased by the borrower in accordance with the offers will be canceled and will not be reissued or resold.

Ukreximbank reminded that its LPN due in 2022 with a par value of $249.633 million with a coupon of 9.625% and LPN due in 2025 with a par value of $599.3 million with a coupon of 9.75% are in circulation.

According to the promulgated terms, LPN due in 2025 are scheduled to be redeemed for up to $200 million and their purchase is given higher priority than LPN due in 2022, the volume of which is limited to $100 million.

LPN due in 2022, subject to early presentation before November 6 inclusive, are redeemed at a price of 104.5% of the face value, LPN due in 2025 – at 103.75% of the face value, the premium for early redemption is 3%.

According to the offer, Ukreximbank reserves the right to increase both the total redemption amount and the redemption amount for each bond issue.

Information on the results of the early presentation of securities for redemption is scheduled to be made public on November 9 and pay off on November 10.

The manager of the deal is Goldman Sachs International.

Ukreximbank was established in 1992. The state is the only owner. According to the National Bank of Ukraine, as of September 1, 2020, in terms of total assets being UAH 235.375 billion, Ukreximbank ranked third among 75 banks operating in the country.