State-owned Ukreximbank has raised the interest rate on its Eurobonds due November 14, 2029 from November 14, 2024 to 10.45% per annum, according to a stock exchange announcement by the issuer of these Eurobonds, Biz Finance Plc, on Wednesday.
According to it, the interest rate on the loan provided to the bank through the issuance of these Eurobonds has been raised to 11% per annum.
As reported, in November 2019, the bank, through Biz Finance, issued Eurobonds in the form of loan participation notes with a total nominal value of $100 million with a fixed coupon rate of 9.95% per annum and maturity in November 2029 with the possibility of early redemption in November 2024 solely for the purpose of financing the bank’s subordinated debt. Interest is payable semi-annually on May 14 and November 14.
According to Ukreximbank’s reporting, as of the middle of this year, its liabilities under the other Eurobonds issued in 2013, which finally mature on January 22, 2025, amounted to $40.566 million.
These Eurobonds, originally issued in the amount of $600 million and due in 2018, were reprofiled on July 9, 2015, with the following terms: coupon rate of 9.75% per annum; final maturity was extended by 7 years, i.e. to January 22, 2025. At the same time, 50% of the Eurobonds will be redeemed on January 22, 2021, and the remaining 50% of the bonds will be redeemed between July 22, 2021 and January 22, 2025 in eight equal semi-annual installments. In 2020 and 2022, the bank repurchased these bonds for a total amount of $238.006 million at par and canceled them.
Ukreximbank was established in 1992. The sole owner of the financial institution is the state.
According to the NBU, as of September 1, 2024, the bank ranked 3rd in terms of total assets with UAH 299.42 billion among 62 active banks. Its net profit in the first eight months of this year amounted to UAH 5.36 billion, which is 73.4% more than in the same period last year.
State-owned Ukreximbank (Kyiv) is closing its representative offices in the United Kingdom and the United States to optimize operating costs, the issuer said in a statement in the disclosure system of the National Securities and Stock Market Commission (NSSMC).
According to it, the above decisions were made by the supervisory board of the state-owned bank on August 30, 2024.
According to the National Bank of Ukraine (NBU), as of July 1, 2024, Ukreximbank ranked 3rd (UAH 287.18 billion) in terms of total assets among 62 banks in the country.
The net profit of the financial institution in 2023 amounted to UAH 3.25 billion.
State-owned Ukreximbank has successfully sold a pool of land plots for construction in Kyiv region through the OpenMarket electronic trading system (SE SETAM of the Ministry of Justice of Ukraine). The total sale amounted to UAH 28,289,000. These land plots were acquired by the Bank as a result of work with non-performing loans (NPL) and sold at a price higher than the cost of acquiring them, which confirms the effectiveness of the Bank’s actions. In 2023, Ukreximbank’s proactive position and continuous work of the NPL division, despite all the existing obstacles, gave the bank a record result of UAH 2.7 billion in NPL repayments. In total, over the past 10 years, repayment of NPLs amounted to UAH 10.1 billion, 50% of which was received over the past 3 years.
“Our bank demonstrates good results of working with NPLs in 2024. With the sale of this land plot, the total portfolio of the Bank’s repossessed property sold in 1H2024 amounts to UAH 190 million, which confirms the success of the previous year,” said Anatoliy Lola, Director of Restructuring and Recovery Department of Ukreximbank.
The land plots with a total area of 12,755 hectares are located in Bucha district of Kyiv region (Kyiv-Svyatoshyn district). Their intended purpose is for construction and maintenance of a residential building, outbuildings and structures (personal plot). The land plots are located in an open field with a flat terrain, 4 km from the center of Bilohorodka village.
“Our portfolio includes many attractive properties, such as these plots, which will be used for housing construction,” said Pavel Gashkovets, Ukreximbank’s Management Board Member in charge of organizing work with distressed assets. “The bank regularly holds electronic auctions for the sale of property that was collateral for non-performing loans on the principles of transparency and openness. All information about the sale of such property can be found on the bank’s website in the “Currentauctions” section, and the entire list of property available for sale is given in the “Sale of own property” section.”
The village of Bilohorodka is located on the right bank of the Irpin River, 22 km from Kyiv and 8 km from the Tarasivka passenger railway station.
“The land plots have a favorable location and convenient transport links, which provides an excellent opportunity for residential development. We congratulate the bank and the buyer on the successful transaction,” said Oleksandr Mamro, CEO of SE SETAM.
TheOpenMarket auction (SE SETAM of the Ministry of Justice of Ukraine) is a simple and effective means of selling and purchasing property via the Internet. The online auction has been operating throughout Ukraine since 2014, and the total amount of sales since its launch is UAH 22.2 billion.
State-owned Ukreximbank (Kiev) earned UAH 4.4 billion in net profit for January-June this year, which is 2.3 times higher than the result for the same period last year, the press service of the financial institution said on Friday.
“June net profit of UAH 188 million allowed Ukreximbank to complete the first half of 2024 with a profit of UAH 4.4 billion, which is almost equal to the bank’s pre-tax profit for the whole of 2023, which amounted to UAH 4.9 billion,” the report said.
Ukrexim specifies that for the six months of 2024 operating profit increased by UAH 1.9 billion compared to the result of last year – up to UAH 3.3 billion.
According to the National Bank, Ukreximbank earned UAH 1.9 billion in net profit for the first 6 months of 2023, and in total for last year it amounted to UAH 3.3 billion. As of June 1, 2024, the bank ranked third in total assets among 63 banks (UAH 293.9 billion).
State-owned Ukreximbank has provided $4.5 million to replenish working capital and purchase equipment for Dnipro-based agricultural producer Agro Oven LLC, according to a press release from the financial institution.
It is specified that $2.3 million of the total amount was provided for three years to refinance the cost of purchasing equipment for poultry farming, and the remaining $2.2 million was provided for 1.5 years to replenish working capital to ensure uninterrupted operations.
According to the press service of the financial institution, the financing rates are classified as confidential information.
According to the release, Agro Oven LLC is part of the Agro Oven Group of Companies, which is a leader in the production of livestock products in the Dnipro region and is among the top 10 poultry producers in Ukraine and at the same time among the top 3 largest exporters of poultry products in Ukraine. According to the website, the company started its operations in February 1998 with 4,000 employees in agriculture, livestock, poultry, and its own processing plants. It is stated that production is provided by four agricultural farms of the corporation in Magdalynivka, Solonyansky, Novomoskovsky, and Dnipropetrovsky districts of Dnipropetrovska oblast.
“Agro Owen supplies products under its own brands Dlia Svoi, Zolotko, Svoi Potato, Dniprovskyi Myasokombinat, and also sells them through its own retail network, Dim Myasu.
The ultimate beneficiary is Viktor Zavorotnyi (65%). According to OpendataBot, the company increased its revenue in 2023 by 14.4% to UAH 4.04 billion, while the net profit of the agricultural producer jumped 2.4 times to UAH 166.1 million. The number of employees decreased by 121 to 1389 over the year, according to the platform.
State-owned Ukreximbank (Kiev) is selling a complex of buildings and structures, as well as a land plot in Kiev region through the OpenMarket electronic bidding system (SE “SETAM” of the Ministry of Justice of Ukraine), according to a press release of SETAM.
The starting price of the lot is 108 million 412 thousand 224 UAH. The auction is scheduled for April 17. The guarantee fee for participation in the auction is UAH 10.841 mln.
The press release notes that Ukreximbank is selling the car plant, but does not specify the name, but judging by the address of location in Boryspil and the attached photos, it is PJSC “Boryspil Automobile Plant” (“BAZ”) of the corporation “Etalon”.
The total area of the sold lot is 18.67 thousand square meters, including the main production building (7679.9 square meters) and production building (644.8 square meters); administrative and utility building with canteen (3 213.6 square meters); spare parts warehouse (4016.6 square meters) and other buildings.
The land plot has an area of 7.5205 hectares. Target purpose: for placement and operation of main auxiliary and auxiliary buildings and structures of processing, machine-building and other industries.
In the press release it is noted that the buildings and structures are in exploitable technical condition. The facility is fully operational as a production and warehouse complex with an administrative part. Its territory is fenced and guarded.
Borispol Motor Plant was established in 2002, where the corporation “Etalon” organized the production of small class buses. Currently, buses of various classes and trolleybuses are produced at the corporation’s Chernihiv auto plant.
According to the register of court decisions, in January 2023 PJSC BAZ was recognized bankrupt and liquidation procedure was opened.
According to the data of the National Commission on Securities and Stock Market for the third quarter of 2023, Bodmin AG (registered in Switzerland) owns 74.37% of BAZ shares, another 22.81% belongs to Kirayn LLC (Kiev).
