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State-owned Ukreximbank has made proposals to its creditors to extend by four to seven years the maturity dates of an issue of the bank’s eurobonds that was set to mature this April, the bank has said in a report.
The bank offered holders of Eurobonds due on April 27, 2015 a restructuring mechanism envisaging the repayment of 50% of the principal amount of the debt by April 27, 2019, and the outstanding principal amount within three years in equal semi-annual installments, beginning from October 27, 2019 until the final maturity date of April 27, 2022, according to a statement for the bondholders published on the Web site of the bank.
At the same time, the bank suggests to raise the interest rate on the bonds starting from April 27 from the current 8.375% to 9.625% per annum.
The bank also proposes to amend the loan agreement terms, according to which the default under foreign currency debt securities will be considered a failure to fulfill obligations under such securities of an amount that is 12% or more of the bank’s total assets.
The bank announced its intention to appeal to the Ukrainian Cabinet of Ministers for assistance in arranging effective work in order to fulfill bank’s obligations to creditors.
The bank also reported there was to be a Web conference with creditors on Tuesday, April 21, at 1000 London time.
Earlier on April 20, the Ministry of Finance suggested that creditors of Ukreximbank restructure the Eurobonds due in April 2015 that were issued by the institution, under the terms of extending payments for 10 years, without reducing the amount of payments and maintaining the bond’s coupon rate at 8.375%.