Privatbank transferred UAH 4.987 bln to the state budget for the first ten months of 2015, which twice exceeds the amount of taxes and fees paid by bank for 2013 (UAH 2.416 bln) and is 1.5 times more than for 2014 (UAH 3.489 bln).
PrivatBank paid UAH 2.443 bln of taxes on deposits to the state budget for the first ten months of 2015 and over UAH 677 mln was transferred to state retirement and social funds and the Deposit Guarantee Fund received over UAH 1.84 bln from PrivatBank.
According to the Ukrainian tax administration, PrivatBank is one of the Top-10 largest taxpayers in Ukraine and leads the ranking of the largest taxpayers among banks.
PrivatBank has increased its regulatory capital by USD 220 mln due to a successful deal on subordinated debt maturity extension on international markets. The deal allowed PrivatBank to increase its capitalisation and improve its capital adequacy to nearly 12% (11.87%). The minimum capital adequacy ratio established by the National Bank of Ukraine (NBU) is 10%.
“Almost all investors voted for the transaction extension – declared Chairman of PrivatBank’s Board Olexandr Dubilet. – The deal is great and favourable for the bank, actually we are talking about UAH 10 bln! More than UAH 5 bln of these funds will be included in the bank’s capital.”
According to the NBU, the increase in equity due to deal with international investors will allow PrivatBank to fulfill the capitalisation program agreed with the central bank. The program is based on the results of stress tests conducted as part of agreements between Ukraine and the International Monetary Fund.
“Moreover, I can say that the bank had to inject UAH 8.2 billion following stress testing and the bank complied with this program,”- said Governor of the Board of the NBU Valeria Gontareva.
Major international partners welcomed the increase in the capitalisation of PrivatBank. They noted that it opens up new opportunities not only for the bank but also for the whole Ukrainian financial market.
“Visa has been actively cooperating with PrivatBank for almost 20 years. We are proud that we, together with PrivatBank, were the first to offer Ukrainian consumers a range of new payment products and solutions, including money Visa card-to-card transfers, “Verified by Visa” service and the first mPOS mobile terminals, – remarked Mandy Lamb, Visa General Manager for CIS and Southeastern Europe. – The Ukrainian market offers significant opportunities for the development of electronic payments and innovations, and we are going to collaborate with PrivatBank further to provide Ukrainian consumers with new payment solutions.”
On November 13th, international investors accepted PrivatBank’s proposal on extension of a syndicated loan that will allow the bank to use raised funds to increase regulatory capital, which including the bank’s shareholders’ investments will total USD 220 mln. Moreover, successful negotiations with creditors will allow to extend the bank’s USD 200 mln Eurobonds’ maturity until 2018. Thus, PrivatBank has received UAH 10 bln of support from international investors.
Having received the overwhelming support of its creditors and the seal of approval from the High Court of England and Wales today, PrivatBank, Ukraine’s largest commercial bank, has completed the restructuring of its public debt and extended the maturity dates to February 2021. At a meeting of its creditors in London earlier this week, PrivatBank’s Scheme of Arrangement (the implementation tool for the restructuring) obtained votes from 99% of participating creditors.
The successful restructuring of its public debt will further bolster the Bank’s capital base which will ensure that customers of the Bank can continue to have confidence in PrivatBank. This result will be welcomed by all stakeholders given the integral role that PrivatBank plays in the banking system of Ukraine.
The restructuring, which has been conducted with full overview and approval of the National Bank of Ukraine, will:
- result in an increase of the existing capital adequacy ratio of the Bank to above 11%;
- result in an increase of the liquidity position of the Bank.
The restructuring, which will formally complete next week, will also enhance value for creditors of the Bank, including its bondholders, and as mentioned above, will provide continuing security for the Bank’s loyal customer base and deposit holders.
This transaction is unique as PrivatBank is the only Ukrainian bank that has successfully restructured its external indebtedness via a Scheme of Arrangement sanctioned by the English court.