PrivatBank (Dnipro) officially informed Deutsche Trustee Company Limited, a trustee on 2018 eurobonds, that the bank does not have any obligations under the securities, according to a report on the website of the London Stock Exchange.
“In response to your letter of February 8, please be informed that PrivatBank has no more obligations under the eurobonds on $175 million with a coupon rate of 10.875% per annum and maturing in 2018, as well as eurobonds for $200 million with a coupon rate of 10.25% per annum and maturing in 2018. As we have previously notified you in a letter dated January 5, the obligations under the eurobonds were disposed of by the Individuals Deposit Guarantee Fund, on December 21, 2016 during action of temporary administration in the bank. Thus, PrivatBank received the balance from the fund without these commitments,” PrivatBank said in a response to Deutsche Trustee Company.
As reported, as part of the nationalization of PrivatBank, its obligations to a Special Purpose Vehicle (SPV, Britain), the issuer of eurobonds, were subject to bail-in procedures and were exchanged for the bank’s additionally issued shares.
Later the Individuals Deposit Guarantee Fund that introduced temporary administration at the bank, sold all the bank’s shares to the state for UAH 1. (Interfax/Business World Magazine)