LONDON, Nov. 13, 2015 /PRNewswire/ -- BNY Mellon, a
global leader in investment management and investment services, has
acted as the tabulation and settlement agent on the $15 billion sovereign external commercial debt
exchange by the Government of Ukraine. BNY Mellon has also been appointed
trustee, principal paying agent, registrar and transfer agent on
all nine new sovereign eurobonds and an innovative $3 billion GDP-linked securities' issuance by
Ukraine.
The transaction is one of the largest commercial debt
restructurings by an emerging markets' sovereign1 and
was executed in compliance with the conditions of the current
financing arrangement between Ukraine and the International Monetary Fund.
In particular, the foreign commercial debt exchange allowed
Ukraine to immediately write off
approximately $3 billion of the
nominal debt stock, delay principal amortisations until 2019 and
extend the average life of debt in return for issuing additional
securities that, between 2020 and 2040, may pay institutional
investors a proportion of Ukraine's annual real GDP growth.
"BNY Mellon used its global resources to ensure that the complex
commercial arrangement reached between Ukraine and its ad-hoc creditor committee
could be timely and effectively implemented," said Dean Fletcher, head of Corporate Trust EMEA at
BNY Mellon. "The mechanics of the restructuring involved holding
meetings with bondholders on 14 different series of notes,
processing nearly 4,000 individual voting instructions by our teams
in EMEA and the US as well as arranging for the settlement of all
new securities into the international clearing systems. Our
comprehensive and well-balanced service offering allowed us to
provide a single point of contact for performing all of these roles
which was crucial for the successful implementation of this
important and high-profile operation."
"The formal completion of the sovereign exchange forms part of a
larger restructuring of Ukrainian external debt which will enable
Ukraine to continue with economic
reforms and receive further tranches of funding support from the
IMF and other official multilateral creditors while it copes with
severe geopolitical challenges, economic recession and resulting
rapid currency depreciation," said Sergei
Kotov, regional executive for Eastern Europe, Global Client Management at
BNY Mellon. "This solution to Ukraine's funding gap over the next four years
puts the country on a significantly more sustainable growth path
and financing trajectory. BNY Mellon is at the forefront of these
efforts, having recently acted in a similar capacity for a number
of Ukrainian quasi-sovereign and privately-owned entities on their
debt re-profiling exercises."
BNY Mellon collaborated closely with Lazard Freres and White
& Case LLP, Ukraine's
financial and legal advisors, respectively, to ensure the
successful completion of Ukraine's
sovereign debt exchange.
Notes to editors:
BNY Mellon
BNY Mellon is the premier provider of corporate trust services
to the debt capital markets, providing customized and market-driven
solutions to investors, bondholders and lenders. As of September 30, 2015, BNY Mellon Corporate Trust
served as trustee and/or paying agent on more than 60,000
debt-related issues globally. The corporate trust business utilizes
its global footprint and expertise to deliver a full range of
issuer and related investor services including trustee, paying
agency, fiduciary, escrow, and other financial services. The
business administers a wide array of assets and types of programs
to multinational corporations, financial institutions, governments
and their agencies, and the banking, securities, and insurance
industries.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of Sept. 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or
administration, and $1.6 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on www.bnymellon.com.
Follow us on Twitter @BNYMellon or visit our newsroom at
www.bnymellon.com/newsroom for the latest company news.
This press release is issued by The Bank of New
York Mellon to members of the financial press and media.
All information and figures source BNY Mellon unless otherwise
stated as at September 30, 2015.
The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818.
Branch office: One Canada Square,
London E14 5AL. The Bank of New
York Mellon is supervised and regulated by the New York State Department of Financial
Services and the Federal Reserve and authorised by the Prudential
Regulation Authority.
The Bank of New York Mellon London branch is subject to regulation
by the Financial Conduct Authority and limited regulation by the
Prudential Regulation Authority.
Details about the extent of our regulation by the Prudential
Regulation Authority are available from us on request.
Contact:
Malcolm Borthwick
BNY Mellon
+44 (0) 20 7163 4109
malcolm.borthwick@bnymellon.com
1
https://www.imf.org/external/pubs/ft/wp/2012/wp12203.pdf
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SOURCE BNY Mellon