Kyiv-based PJSC Finance and Credit Bank has announced default on its $100-million Eurobonds issued in 2006, after the bank was declared insolvent, the bank reported on London Stock Exchange.
As the bank said, under Article 36 of the Law of Ukraine on the system of guarantee of deposits from individuals, "steps cannot be taken during the administration period to enforce the following: any claims of creditors to the Borrower; any lien or foreclosures against the Borrower; any default interest, penalties and fines on any agreement made with the Borrower; any offsets of assets and liabilities of the Borrower; accrual of any interest or fees on liabilities of the Borrower."
Read alsoFerrexpo shares collapse on London Stock ExchangeAs UNIAN reported earlier, in November 2006 Finance and Credit Bank issued Eurobonds worth $100 million at the rate of 10.375% per annum. In 2009, bond holders agreed to extend the maturity for four years for 95% of the bonds with an increase in the coupon rate to 10.5% (currently 10.375%) and semi-annual coupon payments. In December 2014, the bank restructured Eurobonds worth $95 million with additional placement of up to $100 million until 2019 and the decrease in the coupon rate to 9.25% per annum.
Read alsoUkraine to sell assets of 13 bankrupt banks this weekOn September 18, the Individuals' Deposit Guarantee Fund introduced a temporary administration to the bank following a decision of the National Bank of Ukraine on recognition of the bank insolvent.
Bank Finance and Credit was founded in 1990 and belonged to a group of major Ukrainian banks. Major shareholders of the bank are Ascania Company (46.50%) and F&C Realty (49.97%), controlled by Ukrainian businessman Kostiantyn Zhevaho.