Sayenko Kharenko advises

Ukreximbank on successful UAH 4 billion repeat of hryvnia-denominated Eurobond

Sayenko

Kharenko has acted as Ukrainian legal counsel to JSC “The State Export-Import

Bank of Ukraine” in connection with UAH 4,051,000,000 (approximately

USD 150,000,000) 16.5 per cent. Loan Participation Notes due 2021. Citigroup

Global Markets Limited and J.P. Morgan Securities plc acted as joint lead

managers for the issue. sk_ukreximbank_uah_lpn_press-release_eng

The transaction is the second ever UAH-denominated

Eurobond issue by a Ukrainian issuer, with the first one also made by

Ukreximbank in 2011 with

legal support by Sayenko Kharenko (see this press releasefor details: https://www.sk.ua/news/sayenko-kharenko-advised-on-the-benchmark-local-currency-eurobond-issue-by-ukreximbank). The 2018 deal has been

structured as loan participation notes and had other distinguishing features (in

terms of currency controls, taxation, etc.) as compared to Ukreximbank’s 2011

deposit-linked notes issue.

According to Ukreximbank: “The transaction has

allowed Ukreximbank to raise funds denominated in hryvnia for a three-year

period – a term that is practically unavailable for local market borrowings at

the moment. The transaction will enable JSC Ukreximbank to proceed with its

long-term lending projects, which will contribute towards establishing

favorable conditions for the Ukrainian economy’s sustainable development.”

“It is always a great pleasure to work with

Ukreximbank team. Many of their deals are first-of-a-kind and, like the present

one, often unmatched by the rest of the market. We hope to see other Ukrainian

banks follow Ukreximbank into international capital markets soon, especially

given that the Ukrainian tax opportunity window for Eurobonds will close this year,”

said Anton Korobeynikov, Sayenko Kharenko partner.

JSC “The State Export-Import Bank of Ukraine” is a 100 %

state-owned bank, one of the major operators in the Ukrainian banking market.

The bank services a large portion of export and import transactions by

Ukrainian business, acts as a sole financial agent of the Ukrainian government

for loans from foreign financial institutions, and partners with major

international financial institutions in their Ukrainian business development

programs.

Sayenko

Kharenko team was led by partner Anton Korobeynikov and included senior

associate Marta Lozenko, associate Denys Nakonechnyi, junior associates Vira

Pankiv and Oles Trachuk. Senior

associate Konstantin Penskoy and associates Yurii Dmytrenko and Mykhailo Grynyshyn provided Ukrainian tax and corporate advice.