Bakhmatyuk says he secured USD 0.2 bln financing into VAB equity

Oleg Bakhmatyuk, the owner of a 90% stake in VAB Bank (VABANK), said Ukraine’s central bank (NBU) declined to support his initiative to recapitalize the bank, even though this initiative was supported by the president and prime minster, according to an interview published on Nov. 24 by forbes.ua. His comments were in response to the NBU declaring VAB Bank insolvent on Nov. 20 and ordering it to introduce an interim administration to the bank starting Nov. 21.



Bakhmatyuk said he signed a memorandum with the Cabinet and the NBU for a capital injection into the bank. He said he was able to secure USD 200 mln in borrowed funds for that purpose and claimed the agreement was reached that the Finance Ministry would contribute UAH 4 bln into the bank’s capital. He blamed “the government” for the deal’s failure. An EGM of VAB Bank aimed at considering boosting its capital by UAH 7 bln was scheduled for Nov. 17, though it failed to convene.



Bakhmatyuk sees two developments for the bank now – either it will be nationalized, or it will be “saved” via contribution of a subordinated debt. He does not rule out that he will offer a 10-year subordinated debt to the bank.



Alexander Paraschiy: Thus far, there is little clarity on the future of VAB Bank as it’s unlikely that the funds that Bakhmatyuk found to support the bank will be enough for its recovery. At the same time, the USD 200 mln in potential investment that Bakhmatyuk has reportedly found looks encouraging for his other businesses, like Ukrlandfarming (ULF, UKRLAN) and Avangardco (AVINPU, AVGR LI), which is scheduled to repay USD 200 mln in Eurobonds in October 2015.



Recall, last month Ukrlandfarming initiated a placement of preferred shares to raise up to USD 250 mln, with strengthening the company’s balance sheet being one of the deal’s aims. If Bakhmatyuk was able to raise money to save the poor-performing bank, he is very likely to be able to redirect these funds to support ULF, if need be.



On the flip side, losing VAB Bank will cost Bakhmatyuk a source of ULF financing. As we’ve reported, the bank provided about USD 100 mln in lending to ULF, which the holding won’t be able to roll over once it matures.

Источник: Конкорд Капитал