The period when foreign banks were open to lending to Ukrainian companies is in the past. Raising money for development has become more than difficult. Lenders and investors, who previously were ready to lend, began to count literally every penny, very carefully and scrupulously evaluating the business of the borrower, according to 112.ua.
Such instruments for Ukrainian business, such as restructuring and refinancing old debts, have replaced the most popular financial instruments in the past.
“Due to a number of objective factors, the need to reduce the debt burden in recent years is relevant for many Ukrainian companies. They need solutions: constructive, logical and pragmatic ones. The demand for literate restructuring has increased significantly,” said Serhiy Chuikin, managing director of the investment banking department.
In the current realities, even the largest market players had to resort to partial restructuring and partial refunding. “These are rather complicated cases, in which not only the banks take part, but also export credit agencies, bondholders, syndicates of international banks and the local banks are involved, too. These are different types of lenders whose interests need to be taken into account,” says Chuikin.
If we talk about the top deals in recent years, we can note the Metinvest deal to refinance its debt ($ 2.271 billion), which was recognized as a 2018 deal among issuers from developing countries of Europe, the Middle East and Africa according to the IFR magazine, the awards of which are considered the most prestigious in the global financial community.
Deutsche Bank and ING, jointly with Natixis and UniCredit, acted as joint organizers of the refinancing of bonds and coordinating authorized leading organizers of the pre-export financing transaction.
“The transaction carried out by Metinvest is unique: the company has restructured its debt and has done it under fairly investor-friendly conditions. Now these securities are well traded,” says Dragon Capital investment banker Serhiy Fursa.