Sayenko Kharenko has acted as Ukrainian legal counsel to Ukreximbank, the state-owned Export-Import Bank of Ukraine, in connection with UAH 4.051 billion (approximately USD 150 million), 16.5% loan participation notes due 2021. On English law, Ukreximbank was advised by White & Case. The joint lead managers for the issue, Citigroup Global Markets Limited and J.P. Morgan Securities, were advised on Ukrainian law by Avellum and on English law by Latham & Watkins.
The 100% state-owned State Export-Import Bank of Ukraine services a large portion of export and import transactions by Ukrainian businesses, 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.
The transaction is the second ever UAH-denominated Eurobond issue by a Ukrainian issuer. The first was also made by Ukreximbank in 2011, again with legal support by Sayenko Kharenko. This most recent deal was structured as loan participation notes and differed in other ways from the 2011 deposit-linked notes issue.
Ukreximbank commented: “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," said Anton Korobeynikov, Partner at Sayenko Kharenko. "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."
The Sayenko Kharenko team was led by Partner Anton Korobeynikov and included Senior Associates Marta Lozenko and Konstantin Penskoy, Associates Denys Nakonechnyi, Yurii Dmytrenko, and Mykhailo Grynyshyn, and Junior Associates Vira Pankiv and Oles Trachuk.
White & Case's London-based team included Partner Stuart Matty, Counsel Melanie Davies, and Associate Hashim Eltumi.
Avellum and Latham & Watkins did not reply to our inquiries on the matter.