PrivatBank had the
following notes (the “Notes”) in issue:
1. US $175 million 10.875%
Loan Participation Notes due 28.02.2018 (the “$175m Senior Notes”);
2. US $200 million 10.25% Loan
Participation Notes due 23.01.2018 (the “$200m Senior Notes” and,
together with the $175m Senior Bonds, the “Senior Notes”); and
3. US $220 million 11% Loan
Participation Notes due 2021 (the “Subordinated Notes”).
The Notes are issued by an SPV
established in the UK which has on-lent the proceeds of the issue of
the Notes to PrivatBank under four loan agreements (the “Loan
Agreements”) (one each for the Senior Notes and two subordinated loans for
the Subordinated Notes).
These loans are separately secured by the
SPV in favour of the relevant trustee appointed in respect of the
applicable Notes by way of assignment and charge for the benefit of the trustee
and the holders of the relevant Notes.
Article 41.1 of the Law of
Ukraine on Households Deposit Guarantee System (“Article 41.1”) provides
for the resolution of a regulated bank by appointment of a temporary
administrator, the bail-in of certain liabilities and the nationalisation of
the bank. Pursuant to the exercise of Article 41.1 in respect of PrivatBank,
each of the loans represented by the loan agreements were bailed-in during
the temporary administration ofPrivatBank. The nationalisation of PrivatBank (at
which point the temporary administration of PrivatBank ceased) has
also occurred on 21 December 2016. Payments under each series of Notes are made
on a limited recourse basis to the extent that principal, interest or
other amounts are received by the issuer of the Notes under the relevant Loan
Agreement and as such where no payments are made under the Loan Agreements
following bail-in, no payments will be made under each series of Notes. Further
detail will be announced in due course.
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