The liabilities of recently nationalized Ukrainian lender PAO KB Privatbank on its three eurobond issues have been bailed in, with no payments to be made to bondholders, the National Bank of Ukraine said Dec. 26.
The bail-in refers to $175 million, 10.875% senior loan participation notes due Feb. 28, 2018; $200 million, 10.25% senior loan participation notes due Jan. 23, 2018; and $220 million, 11% subordinated loan participation notes maturing in 2021, the regulator said Dec. 26. The bonds were issued by a special purpose vehicle incorporated in the U.K., and the proceeds were transferred to Privatbank in the form of loans.
Further details regarding the bail-in will be announced "in due course," the central bank said.
Privatbank also changed the composition of its supervisory and management boards after the nationalization. In addition to Chairman Oleksandr Shlapak, the management board has 11 members, including First Deputy Chairman Oleh Serheyev, responsible for servicing corporate clients and small businesses; Oleksandr Dubrovin, who will oversee the lender's risk management system; Oleksii Shaban, who will be in charge of the lender's retail business; Halyna Pakhachuk, who will head the bank's treasury division and oversee its investment business; and chief accountant Valentyna Yarmolenko, the bank said Dec. 26.
The Ukrainian Finance Ministry said Dec. 23 that Privatbank's supervisory board will include Francis Malige, the managing director of the European Bank for Reconstruction & Development in eastern Europe and the Caucasus, as well as Artem Shevalev, Andrea Moneta, Steven Seelig, Sergiy Oleksienko, Engin Akçakoca and Oksana Markarova.