Sayenko Kharenko advised Oschadbank on reprofiling of its USD 100 million subordinated loan

Sayenko Kharenko acted as a Ukrainian legal advisor to Public Joint Stock Company “State Savings Bank of Ukraine” (Oschadbank) in connection with the bank’s reprofiling of USD 100 million subordinated loan due 2017 in line with the requirements of the IMF’s Extended Fund Facility.

Similarly to the earlier reprofiling of the bank’s two Eurobond issues, the changes to the terms of the subordinated loan included maturity extension by seven years to 19 January 2024, increase of the interest rate to USD 6-month Libor plus 6.875 per cent per annum and introduction of an amortizing repayment schedule. The transaction also involved conversion of the financing structure into loan participation notes.

Oschadbank is one of the largest banks in Ukraine with the most developed branch network comprised of over 6000 offices. Oschadbank is the only Ukrainian bank whose depositors have the benefit of the government guarantee of the full amount of their deposits under the Ukrainian banking laws.

Sayenko Kharenko’s team on the transaction included counsel Anton Korobeynikov, associates Marta Lozenko, Taras Shyb and Dmytro Vasylyna, and was led by partner Nazar Chernyavsky.