Transactions in the International Capital Markets
JSCIB “UkrSibbank” (BNP Paribas Group) actively operates in the international capital markets and offers its clients a wide range of services according to the international standards.
The main activities of JSCIB “UkrSibbank” International Business Department are:
- Arrangement of Eurobond issues
- Arrangement of syndicated loans
- Trade finance, including granting loans to the Bank’s clients under the cover of foreign export credit agencies (ECA)
- Financing of public utility companies, secured with USAID’s guarantee
- Advisory services on the assigning of international credit ratings
- Advisory services on the international financing and business development to its clients, who plan to enter the international capital markets
- Monitoring and analysis of international capital markets
JSCIB “UkrSibbank” has a good reputation on the foreign markets of debt capital. In April 2004 the Bank originated USD100 million through loan participation notes (LPNs) issued by Dresdner Bank AG, with the lead-arranger of the issue being Dresdner Kleintwort Wasserstein. The issue had a fixed coupon of 10.5% and was fully repaid in April 2007. In July 2005 JSCIB “UkrSibbank’ organized a second USD 125 million Eurobond issue with a fixed coupon of 8.95% and maturity in 2008. The lead-managers of this issue were Deutsche Bank and UBS Investment Bank. In April 2006, following the completion of the acquisition deal of 51% stake in JSCIB “UkrSibbank” by French bank BNP Paribas, international credit rating agencies Moody’s and Fitch Ratings upgraded the ratings of the Bank’s Eurobonds to “Ba2” and “BB-” respectively. In December 2006 JSCIB “UkrSibbank” placed third USD 500 million Eurobond issue with fixed coupon of 7.75% due in 2011. Until now it is one of the largest Eurobond issues among Ukrainian banks. The lead managers were BNP Paribas, HSBC and UBS Investment Bank. In July 2007 JSCIB “UkrSibbank” placed its fourth Eurobond issue in the amount of USD 200 million with fixed coupon of 7.375% (the lowest coupon rate among Ukrainian private banks) and due in 2010. The lead managers were BNP Paribas and HSBC. All the issues were listed on the Luxembourg Stock Exchange.
Two syndicated loans were attracted by JSCIB “UkrSibbank” in 2005. In February a one-year (with an extension option for the same period) syndicated loan of USD 37 million was received which had a floating interest rate of 6m LIBOR +3.95% having 14 leading international banks acting as participants of the syndicate. The lead arrangers were Standard Bank Plc and Raiffeisen Zentralbank Osterreich AG. In November 2005 syndicated loan of USD 115 million was organized, combining together 24 foreign banks. At the moment of the deal this was the second largest syndicated loan raised by a Ukrainian bank. This syndicate has duration of one year (with an extension option for another year) and has a floating interest rate of 6m LIBOR + 2.95%. The lead arrangers of this syndicated loan were Citigroup, Deutshce Bank AG, Raiffeisen Zentralbank Osterreich AG and Vneshtorgbank. The raised funds were used to fund export-import operations of the Bank’s clients. Having alternative sources of funding with the more attractive terms and conditions, JSCIB “UkrSibbank” did not use extension options and fully repaid both credits in 2006.
In May 2007 JSCIB “UkrSibbank” arranged a new syndicated loan in the amount of USD 250 million for 2 years. The facility has floating interest rate of 6m LIBOR +1.10%. The lead arrangers were BNP Paribas, Bayerische Landesbank and HSBC Bank plc. The raised funds are used for general corporate purposes of the Bank including but not limited to funding trade operations of the Bank’s clients. 18 leading international banks became participants of the syndicated loan.
The Bank can also act as a financial consultant and participant of the process of foreign debt origination for the potential Ukrainian borrowers with an ability to consult on the bond issues and the assignment of credit ratings. The existing international deals and credit ratings serve as a proof of our competency in the issues of international funding. As of 01.08.2007 JSCIB “UkrSibbank” has the following credit ratings in foreign currency:
- Moody’s: Long-term Bank Deposit rating “B2”, positive outlook
- Fitch Ratings: Issuer Default Rating “BB-”, positive outlook
One of the leading areas of the International Business Department is financing of international trade, export-import operations of the bank’s clients. Taking into account the fact that currently many enterprises experience the shortage of funds for capital investment and a standard bank loan could be unsuitable for such purposes, JSCIB “UkrSibbank” offers a more favorable financing source – loans under the cover of foreign export credit agencies (ECA) being provided under mutual projects with leading foreign banks. Such an instrument is suitable for implementation of various investment projects, due to a longer term of financing (up to 7 years) and a relatively lower cost (in Euro, USD and CHF).
JSCIB “UkrSibbank” proved to be a reliable and efficient partner in the international capital market transactions. The Bank’s strategy is aimed at the development of its investment activities and further expansion of its international business. Thus, JSCIB “UkrSibbank” is pleased to offer its clients an individual approach and invariably high quality of services: STARS AT YOUR DISPOSAL.
Please address your questions using the following contacts:
Telephone: +380 44 537 50 09
Telephone: +380 44 537 49 21
Telephone: +380 44 201 22 69
Fax: +380 44 537 50 59
Contact persons:
Vadim Mironyuk
Head of International Business
e-mail: v_mironyuk@ukrsibbank.com
Ivan Levkivskyy
Head of Debt Origination
e-mail: i_levkovsky@ukrsibbank.com
Irina Sinyakevich
Head of Financial Institutions
e-mail: i_sinyakevich@ukrsibbank.com
Anna Kaplya
Head of Trade Finance and Documentary Transaction
e-mail: a_kaplya@ukrsibbank.com
2/12 Andriyivska St., Kyiv, 04070, Ukraine
