Banking

Alfa Bank (Ukraine) has decided to increase its authorized capital by UAH 739.435 mln to bring the Bank’s total capital to the level of UAH 3 716 mln. This is to be achieved through and additional share issue. In 3Q2009, the Bank ranked seventh among Ukrainian banks in terms of assets, which currently stand at UAH 33 963 mln. It also became known that Alfa Bank (Russia) intends to buy up the additional shares issued.

The NBU has prolonged the moratorium on satisfying the requirements of creditors of Rodovid Bank to March, 15 2010. According to the temporary administrator of Ukrprombank, the reason for the extension of the moratorium is that Ukrprombank assets, which are supposed to be transferred to Rodovid Bank according to the government’s decision, have still not been transferred. Nevertheless, the repayment of Ukrprombank deposits by Rodovid Bank is being carried out as planned.

The National Bank of Ukraine has taken a decision whereby it is allowing commercial banks to buy foreign currency from it by way of interventions on the Interbank FX Market, but only in order to fulfill its obligations, at the discretion of the National Bank. In that case, if a given commercial bank purchases foreign currency from the NBU under such conditions, but does not proceed to use it completely for this expressed purpose, then the respective bank will be therefore obliged to return the hard currency to the NBU within a period of three working days.

The First Ukrainian International Bank (FUIB) has reached an agreement with Eurobond holders concerning the restructuring of USD 275 mln worth of Eurobonds. Bondholders agreed to a postponement of the period for the Eurobonds’ redemption from February 16, 2010 to December 31, 2014 and an increase in the coupon rate from 9.75% to 11%.

The Finance and Credit Bank intends to restructure its USD 100 mln Eurobond issue, which matures in January 2010. According to its press release, the Bank is proposing to postpone the repayment of the principal for four years (until January 25, 2014) and increase the coupon rate to 10.5%. Finance and Credit is also ready to immediately redeem 5% of the nominal value of the bonds once bondholders accept the proposed terms.

On December 14, 2009, VAB Bank paid the fifth coupon on its 3-year Eurobonds due in June 2010in the amount of USD 6.3 mln. The coupon is paid semi-annually at the rate of 10.125% per annum.

Rodovid Bank (Kyiv), one of the largest banks in Ukraine, has increased its authorized capital from UAH 5.599 bln to UAH 8.409 bln. The objective of the bank’s additional capitalization, and the involvement of the state, is to ensure the feasible payment of the outstanding obligations of Ukrprombank in repaying retail deposits that were earlier transferred to Rodovid Bank in accordance with resolutions taken by the Cabinet of Ministers and the National Bank of Ukraine.

Privatbank has announced that it plans to launch 100 to 110 new branches in 2010. A spokesman for Privatbank noted that the offices to be opened will touch nearly all regions of Ukraine. In parallel with the expansion of its branch network, the Bank also confirmed its intention to develop its terminals and ATM network.

Ukrsotsbank [USCB UZ, U/R], one of Ukraine’s largest banks, has successfully repaid a loan for UAH 420 mln to the National Bank of Ukraine. According to its press service, the Bank proceeded to repay several large tranches of the respective loan ahead of schedule.

The First Ukrainian International Bank (FUIB) has offered bondholders the schedule for the restructuring of USD 275 mln worth of Eurobonds from this issuer. The main conditions of the announced terms include the postponement of the period for the Eurobonds’ redemption from February 16, 2010 to December 31, 2014 and an increase in the coupon rate from 9.75% to 11%. The proposal should be discussed at the shareholders’ meeting in London on December 15, 2009.