Sayenko Kharenko advises Ukreximbank on landmark USD 100 million subordinated Eurobond issue

Sayenko Kharenko | View firm profile

Sayenko Kharenko has acted as legal counsel to the Joint Stock Company “The State Export-Import Bank of Ukraine” in connection with the issue of USD 100 million subordinated loan participation notes. The notes were issued by Biz Finance Plc., which applied the total principal amount of the issue towards financing a subordinated loan to Ukreximbank. The transaction marks the revival of the subordinated Eurobond for Ukrainian borrowers – an instrument which has been dormant for over a decade. The last previous similar issue back in 2006 was also by Ukreximbank, with Sayenko Kharenko acting as legal counsel.

Sayenko Kharenko has acted as legal counsel to the Joint Stock Company “The State Export-Import Bank of Ukraine” in connection with the issue of USD 100 million subordinated loan participation notes. The notes were issued by Biz Finance Plc., which applied the total principal amount of the issue towards financing a subordinated loan to Ukreximbank. The transaction marks the revival of the subordinated Eurobond for Ukrainian borrowers – an instrument which has been dormant for over a decade. The last previous similar issue back in 2006 was also by Ukreximbank, with Sayenko Kharenko acting as legal counsel.

The notes are listed on the London Stock Exchange. They have a 10-year tenor and bear interest at the rate of 9.95 percent per annum, but are subject to an interest reset and are callable five years after issuance. The proceeds of the transaction will primarily be aimed at substituting the bank’s existing subordinated loan and strengthening its Tier 2 capital. The issue, jointly led by J.P. Morgan and Morgan Stanley, sparked substantial interest among investors, with the total order book reaching USD 300 million.

JSC “The State Export-Import Bank of Ukraine” is a 100% state-owned bank which occupies a prominent place in the Ukrainian banking system as a systemically important bank. It focuses on servicing export and import transactions and provides a broad range of corporate banking services for state-owned entities, and is the only bank acting as a financial agent for the government with respect to loans from foreign financial institutions.

Sayenko Kharenko’s team was led by partner Anton Korobeynikov and included associates Denis Nakonechyi, Vira Pankiv and Oles Trachuk and junior associates Oleksandra Maksymenko and Sofia-Maria Kuzminska.

More from Sayenko Kharenko