Published: August 11, 2009
Ukrainian state-owned Ukreximbank became the first Ukrainian bank to issue new debt since the credit crunch began, when it raised a US$135mn two-year deal in July.
The deal was lead arranged by Standard Bank, and the EBRD committed US$50mn to the senior tranche of the facility.
Stefan Gross, head of DCM loans at Standard Bank, says: “We discussed earlier this year whether it would be possible to do a new Ukrainian deal, and if so, who it could be done with. We decided Ukreximbank was one candidate – it's been a frequent borrower, and is of systemic importance to the banking sector. But we also thought it would be necessary to get the EBRD involved. They agreed. Then we managed to get another five banks into the deal.”
He adds: “The loan agreement is an EBRD loan agreement, which gives the other lenders preferred creditor status, so that if a moratorium is declared, this deal would be excluded from it.”
Gross says the restructuring of the banking sector is advancing slowly. He says: “It's not that the banks were so heavily indebted, but the devaluation of the hryvna has made international debt very expensive for them. Some banks cannot afford to repay.”
Other banks talking to investors, beside Nadra Bank, include Bank Finance and Credit, Rodovid Bank, and UkrGazBank.
Rodovid Bank has around US$20mn in trade finance debt with Cargill, which it is struggling to restructure. The government has said it will not recapitalise the bank until it finishes its restructuring. Cargill is also involved in restructuring negotiations with Nadra and First Ukrainian International Bank.
Alfa Bank Ukraine has already agreed a restructuring plan with investors in its 2009-11 eurobond holders, who agreed to exchange the debt for a new 2012 issue, without a haircut. And real estate company XXI Century agreed a restructuring plan with investors for its US$175mn eurobond. Renaissance Capital was the adviser.