Cabinet outlines plans to recapitalize first three Ukrainian banks

The Cabinet of Ministers detailed its plans to recapitalize the first three Ukrainian banks with state funds – Bank Kyiv, Rodovid Bank (RODB), and Ukrgazbank (UZGB) in three separate June 10 orders that became public this weekend, according to daily Kommersant. The government will place eight and ten year local bond issues at 9.5% coupon for a total sum of UAH 9.473 bln. It will then use the proceeds to inject UAH 2.8 bln into Rodovid in exchange for a 99.97% stake, UAH 3.6 bln into Bank Kyiv in exchange for 99.94%, and UAH 3.1 bln for a 81.58% stake in Ukrgazbank.