The National Bank of Ukraine and the Deposit Guarantee Fund have embarked on a joint pilot project to sell large of assets of insolvent banks. For further details of the pledged assets included in the pools, pease access the virtual data rooms. Potential investors will be given access to data on loans after undergoing registration and signing a non-disclosure agreement with bidding process organizers. Being committed to the principle of maximum disclosure of information, the DGF has published detailed information on the pools and the terms of sale on its website. Please follow the links to view information on pool 1 and pool 2, details of assets and the terms of sale.
Two pools of assets composed of claims under loan agreements totaling over UAH 13 billion have been offered for sale as part of as part of the pilot project. Large corporate loans account for the bulk of the pools. All the assets included in the pools are held as collateral by the NBU.
DebtX Ukraine LLC (the subsidiary of DebtX) and First Financial Network Ukraine LLC (the subsidiary of FFN, two world's leading loan sale advisors are engaged in the pilot project to sell the pledged assets. Initial sales of assets to be conducted through both trading platforms are scheduled for 19 September 2017. Further details of assets and the auction terms and conditions can be found on the websites of these loan sale advisors:
Engaging international companies will enable Ukraine to conduct an initial sale of non-performing loans in line with international best practices. Most importantly is that it will enable Ukraine to attract large foreign and domestic investors that will be given access to the domestic market of non-performing loans. Both companies have a long-term international experience in handling non-performing loans and enjoy a strong international reputation among investors. If this pilot project proves successful, it could give an additional signal to investors that the domestic market of non-performing assets is attractive and open, being governed by by clear and and well-defined rules.
It should be noted that the pilot project to sell assets held by the NBU as collateral was launched in early 2017 by virtue of the NBU Board Decision followed by the Decision of the DGF. The NBU as a pledgee has taken decisions to approve the composition of the pools (lots), the terms of sale and selected auction venues. Proceeds from the sale of assets will be used to satisfy creditors' claims (for refinancing loans provided to banks).
This being said, the auction rules will ensure compliance with all the procedures prescribed by the DGF regulations: an initial price of lots will be set not less than the appraised value and assets will be offered for sale for at least 30 days. In addition, virtual data rooms wil be opened in each bank involved in the pilot project to attract more potential investors.