PrivatBank asks 2015 eurobond holders to postpone payment for longer period – until Jan 2016

PrivatBank (Dnipropetrovsk) has indefinitely adjourned a meeting of holders of eurobonds worth $200 million due to mature on September 23, 2015, and which was scheduled for August 27, 2015, and has asked the creditors to give their consent to extend the repayment date for the securities – until January 15, 2016 instead of December 1, 2015.

The bank said on the website of the Irish Stock Exchange (ISE) that the adjournment would take effect if the holders of bonds worth $150 million due to mature on February 9, 2016 approve the extension of the repayments date until January 23, 2018.

New conditions of redeeming 2016 eurobonds have been proposed: 20% each of the outstanding principal amount of the loan will be paid on August 23, 2016 and February 23, 2017 and 15% each – on May 23, August 23 and November 23, 2017, as well as on January 23, 2018.

PrivatBank proposed that the interest rate payable on the 2015 loan should be increased from 9.375% to 10.25%.

The meeting of bondholders is scheduled for September 7, 2015.

The consent fee is payable to a holder of the notes on the settlement date shall be $20.00 for each $1,000 in principal amount of the qualifying notes voted in favor of the extraordinary resolution on the extension of the repayment date.

PrivatBank was founded in 1992. The bank was the largest bank among 127 operating Ukrainian banks on July 1, 2015 in terms of total assets (UAH 240.009 billion), according to the National Bank of Ukraine.