Pivdenny Bank plans to enter into an interest rate swap agreement with the NBU worth UAH 12 billion

The Supervisory Board of Pivdenny Bank has agreed to enter into a master agreement with the NBU on interest rate swap operations.

The relevant decision was made on 25 June 2020 (Minutes of the Supervisory Board No. 28 of 25 June 2020). The maximum notional amount is UAH 12 billion.

“The NBU is taking a series of measures to support the development of stable, long-term lending in the national currency,” said Maksym Tsymbal, Deputy Chairman of the Management Board at Pivdenny Bank. “Only a month ago, on 8 May, the NBU held the first tender, which introduced incentives for long-term (up to five years) lending to the real sector of the economy. A little time has passed, and we see the next important step on the part of the NBU, a fundamentally new tool for the banking market – the interest rate swap. This tool will allow us to hedge, i.e. reduce/control interest rate risks in long-term lending to the real sector of the economy. We have been waiting for a long time and prepared for the introduction of this hedging instrument. We participated in the working group at the NBU on the introduction of this tool. This is necessary for the further development and support of lending to our clients, so we had no doubt that we would receive support from the Supervisory Board. The agreement is a framework agreement, for a total notional amount of up to UAH 12 billion, which corresponds to growth forecasts of our loan portfolio in the national currency for 2021,” M. Tsymbal summarised.

The market value of the property being the subject of the transaction is UAH 12 billion. The value of the issuer’s assets, according to the latest annual financial statements, is UAH 26,682,382.

The ratio of the market value of the property being the subject of the transaction to the value of the issuer’s assets, according to the latest annual financial statements, is 44.9735 %.