OREANDA-NEWS. On 28 July 2009 was announced, that Ukrgasbank < UGZB UZ U/R > failed to buy back series A bonds against the offer, which took place on 17 July 2009. Instead, the bank proposes to restructure the bonds at 17% yield (initially 16%) during the next three years.  Full amount of the issue constituted UAH 100mn maturing in 2011. Meanwhile, the amount offered for redemption is around UAH 40mn.

Millennium Capital considers the news to be negative for the bank, since it seems about the critical liquidity shortage of the bank. Despite the good structure, UGZB’s credit portfolio does not correspond to the amount of long term deposits within the bank, while liquidity shortage may have arisen due to the outflow of the other banks’ funds. Additionally, the technical default of UGZB may accelerate the deposits outflow from the bank, leading to further liquidity problems.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.