Capital Markets

• Arrangement of Eurobond issues;
• Arrangement of syndicated loans;
• Arrangement and structuring of trade finance deals;
• Advisory services on the assigning of international credit ratings;
• Advisory services on the international financing and business development for its clients, who plan to enter the international capital markets;
• Monitoring and analysis of international capital markets.

UkrSibbank has a good reputation on the foreign markets of debt capital. In April 2004 the Bank originated USD 100 mln 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 UkrSibbank organized the second USD 125 mln Eurobond issue with a fixed coupon of 8.95%, which was fully repaid in July 2008. The lead-managers of this issue were Deutsche Bank and UBS Investment Bank. In December 2006 UkrSibbank placed the third USD 500 mln 5-year Eurobond issue with fixed coupon of 7.75%. Until now it was one of the largest Eurobond issues among Ukrainian banks. The lead managers were BNP Paribas, HSBC and UBS Investment Bank. The issue was timely repaid in December 2011. In July 2007 UkrSibbank placed its fourth Eurobond issue in the amount of USD 200 mln with fixed coupon of 7.375% (the lowest coupon rate among Ukrainian private banks), the issue was repaid in July 2010. The lead managers were BNP Paribas and HSBC. Four issues were listed on the Luxembourg Stock Exchange. In July 2008 the fifth Eurobond issue was arranged within the framework of EMTN Programme in the amount of USD 250 mln with fixed coupon of 9.25%. The lead manager was BNP Paribas, which also together with UBS Investment Bank became a dealer of the first Eurobond issue within the framework of EMTN Programme. The fifth issue was listed on the London Stock Exchange. The fixed coupon of 9.25% was the lowest coupon among the Eurobonds issued by Ukrainian borrowers in 2008. UkrSibbank succeeded with the deal despite global markets volatility, crisis in the United States of America and particularly weakened market sentiment for borrowers from emerging markets. The issue was repaid in August 2011.
 
Two syndicated loans were attracted by UkrSibbank in 2005. In February a one-year (with an extension option for the same period) syndicated loan of USD 37 mln 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 mln was organized, combining together 24 foreign banks. At the time of the deal this was the second largest syndicated loan raised by a Ukrainian bank. This syndicate had duration of one year (with an extension option for another year) and a floating interest rate of 6m LIBOR + 2.95%. The lead arrangers of this syndicated loan were Citigroup, Deutsche 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, UkrSibbank did not use extension options and fully repaid both credits in 2006.
 
In May 2007 UkrSibbank arranged syndicated loan in the amount of USD 250 mln for 2 years. The facility had a floating interest rate of 6m LIBOR +1.10%. The lead arrangers were BNP Paribas, Bayerische Landesbank and HSBC Bank plc. The raised funds were 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. In May 2009 UkrSibbank repaid the syndicated loan in time and in single amount, emphasized stability and reliability for international investors and its depositors. In October 2007 UkrSibbank arranged a new syndicated loan in the total amount of USD 110 mln. The syndicated loan consisted of two tranches in the amount of USD 80 mln and USD 30 million for two and one year respectively. The two-year facility had a floating interest rate of 6m LIBOR +1.20%, one-year facility – 6m LIBOR + 0.80%. The lead arrangers and bookrunners were BNP Paribas, Bayerische Landesbank and HSBC Bank plc. Tranches of the syndicated loan were repaid in October 2008 (USD 30 mln.) and October 2009 (USD 80 mln.).

 
The Bank can also act as a financial consultant and participant of the process of foreign debt origination for the potential Ukrainian issuers and borrowers with an ability to consult on the bond issues, arrangement of syndicated loans 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 01.02.2012 UkrSibbank had the following credit ratings from Fitch Ratings:

• In foreign currency: Issuer Default Rating “B” (Stable outlook);

• National scale rating: Long-term Rating “AAA(ukr)” (Stable outlook). 

 

 

Short-term financing will be interesting foremost to trade companies involved in foreign economic activity. The scheme proven to be more flexible and marketable.

 
UkrSibbank proved to be a reliable and efficient partner in 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, UkrSibbank is pleased to offer its clients an individual approach and an invariably high quality of services.