PrivatBank Converts Eurobond Into Capital

PrivatBank has converted its Eurobond into capital.

Bank’s Chairman of the Board Oleksandr Shlapak said this during a press briefing on Thursday, Ukrainian News Agency reports.

“This was the NBU’s decision. I hope we’ll come to an understanding with the holders,” he said.

PrivatBank has Notes of three series: USD 200 million and USD 175 million due in 2018, and USD 220 million due in 2021.

The Bail-in mechanism, used for the financial recovery of problem banks, supposes either conversion of deposits into shares in the financial institution, or into a special subordinated debt to replenish the capital.

As Ukrainian News Agency earlier reported, the Ministry of Finance on December 21 acquired ownership of 100% of shares in PrivatBank.