PUMB reports on fulfillment of its recapitalization program

First Ukrainian International Bank (PUMB, PUMBUZ), owned by Ukraine’s richest tycoon Rinat Akhmetov, reported on Sept. 1 it submitted all the documents to the central bank (the NBU) that confirm its fulfillment of its recapitalization program. As the bank CEO earlier reported, the bank’s potential capital gap, calculated based on NBU stress tests, was UAH 1.28 bln. The bank avoided a share capital increase as it claims it has managed to fill potential gaps by raising additional collateral on non-performing loans and reclaiming some loans, according to the press release. The results of PUMB’s recapitalization program are subject to approval by the NBU.

Alexander Paraschiy: It’s positive that PUMB managed to complete its program on time (by Sept. 1), thus meeting its commitments to the central bank. This clearly adds much certainty to the bank’s mid-term sustainability. At the same time, a lack of capital contributions from shareholders means the bank’s liquidity position won’t change much as a result of the deal. Additional capital backing would have added more certainty that the bank will proceed smoothly with its Eurobond repayment schedule, according to which it will have to repay about USD 20 mln at the end of each of the next nine quarters. Our view on PUMBUZ bonds is neutral.