Ukraine's state-owned Ukreximbank has successfully placed loan participation notes, having raised US$100 million in subordinated debt, with a 10-year circulation period at a rate of 9.95%, in the international capital markets.
"The funds raised by JSC Ukreximbank through the issue of US$100 million at 9.95% (coupon resettable on the fifth anniversary of issuance) Loan Participation Notes, which are listed on the London Stock Exchange (LSE) and have a 10-year maturity (10NC5 structure – callable on the fifth anniversary of issuance). J.P. Morgan and Morgan Stanley acted as joint lead managers," Ukreximbank's press service said on November 15.
"The total order book for the new issue included orders from approximately 50 different investors and peaked at about US$300 million. The final distribution of investors was as follows: Switzerland (30%), the United Kingdom (29%), the United States (26%), other European countries (9%), and Asia (6% ) in terms of geography; asset managers and funds (61%), hedge funds (21%), as well as banks and private banks (18%) in terms of investor type," it said.
"The move was not for additional liquidity (there is no need for it as of now), but for the purpose of replacing the existing subordinated loan, which was also raised through eurobonds issue and starts to amortize in 2020. The new transaction is in line with our strategic goals. The transaction has allowed the bank to further strengthen its Tier 2 capital," the press service quoted Member of Ukreximbank Board Oleksandr Shchur as saying.
The transaction has been the first issuance of subordinated bonds by borrowers from Ukraine since 2006.
UNIAN memo. Ukreximbank has been operating on the Ukrainian market since 1992 and is one of the largest financial institutions in this country in terms of assets. It is wholly owned by the state.