PrivatBank placed debt securities worth $70 million.

privateOn October 7, PrivatBank announced the completion of a private placement of $70 million in debt securities. The coupon rate was nearly 5,8%. This was reported by Kapital.

The purpose of the securities issue was to increase the bank's capital. It is important to note that the National Bank of Ukraine (NBU) is also requiring PrivatBank to recapitalize. According to the state regulator, this requires UAH 8 billion.

Previously, Igor Kolomoisky's bank reached an agreement with a shareholder, LPN, to purchase debt securities issued by the bank's subsidiary, UK SPV Credit Finance Plc. This constitutes a $70 million subordinated loan.

It's worth noting that the international rating agency Standard & Poor's previously upgraded PrivatBank's long-term foreign currency credit rating. It was raised from SD (selective default) to CC. The short-term credit rating was also raised to C.

 

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