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JSC Ukreximbank successfully completed its new international capital markets transaction – USD 100 million placement of subordinated debt

The State Export-Import Bank of Ukraine successfully completed raising of subordinated debt in the international capital markets for the final term of 10 years in the amount of USD 100 million.

The funds raised by JSC Ukreximbank through the issue of USD 100 million 9.95 per cent. (coupon resettable on the fifth anniversary of issuance) Loan Participation Notes, which are listed on the London Stock Exchange (LSE) and have a maturity of 10 years (10NC5 structure – callable on the fifth anniversary of issuance). J.P. Morgan and Morgan Stanley acted as a joint lead managers.

The total order book for the new issue included orders from approximately 50 different investors and peaked at approximately USD 300 million. The final distribution of investors was as follows: Switzerland - 30%, the United Kingdom - 29%, the United States - 26%, other European countries - 9% and Asia - 6% in terms of geography; asset managers and funds - 61%, hedge funds - 21%, banks and private banks - 18% in terms of investor type.

"In the current operating environment, we view the transaction positively taking into account its term and subordinated nature," said Oleksandr Shchur, Member of the Board of JSC Ukreximbank. - The issue was not for additional liquidity (there is no need for it as of now), but for the purpose of replacing the existing subordinated loan, which was also raised through Eurobonds issue and starts to amortize in 2020. The new transaction is in line with our strategic goals. The transaction has allowed the bank to further strengthen its Tier 2 capital”.

This transaction is the first issuance of subordinated Eurobonds by borrowers from Ukraine since 2006.