27 January 2010, Wednesday
“The process of restructuring the Bank external debt is a unique one in the contemporary history of the Ukrainian business, talking into account success of the achieved result, restructuring scale, number of instruments involved, complexity of the deal, applied financial techniques, and approaches to the creditors”, Rafal Juszczak, Chairman of the FUIB Management Board, dwells on the stages and completion of the debt restructuring process. “Within the framework of the debt restructuring process the Bank acted on the basis of the principles of proactivity, transparency, honesty, and equality in relation to its creditors, adhered to the world best practices and traditions. We have offered the creditors the mutually acceptable variant and managed to reach the best balance between the creditors’ interests and terms acceptable for FUIB. This approach, close business cooperation with a significant number of partners and, by all means, support on the part of the Bank shareholders, their established both within Ukraine and abroad reputation, contributed altogether to the project successful completion."
As it has been reported, regarding the Bank Eurobonds issued in 2007 to the total amount of USD 275 million, the Bank offered the bondholders to accept the new terms superseding the old ones, namely: bonds maturity rollover from February 16, 2010, to December 31, 2014; coupon increase from 9.75% up to 11%; increase of the number of coupon payments from two up to four; and partial early redemption of 8% of the securities nominal value on the original maturity date scheduled for February 2010 — these terms were offered to the holders, having accepted the FUIB offered terms.
All other instruments, including syndicated and bilateral loans, were combined in one single liabilities pool to the amount of USD 237 million, from now onwards they will represent a single uniform syndicated loan, its repayment terms being as follows: maturity — December 31, 2014; applied rate — Libor + 2.5% (from 2013 onwards the 3% margin will be applied as well); instalments are to be made on the basis of the Bank liquidity situation.
“FUIB has a significant experience of operating on the international capital markets and is reputable for being a reliable partner, which is confirmed by the successful completion of the Bank debt restructuring process,” Illya Arkhipov, Deputy Chairman of the FUIB Management Board, Director of Business Development of SCM, comments on the accord reached with the Bank investors. “In our opinion the successfully competed Bank external debt restructuring process is another proof of the creditors’ confidence in FUIB, its stable positions both on the Ukrainian and international markets. In our turn, we do truly believe in soundness of the solutions made by the FUIB Team, and we express our gratitude to the Bank personnel for successful completion of the deal and perfect performance results.”
