Credit Suisse and Deutsche Bank have issued a demand that Ukraine’s dominant fixed network operator Ukrtelecom redeem residual debt of USD222 million ahead of its maturity date, in connection with the pending privatisation of the telco to Austrian investors. As reported by Interfax yesterday, on 25 February 2011 Ukrtelecom is due to repay USD56 million – part of a USD500 million loan obtained in 2005 – whilst redemption of the full balance is set for 25 May 2011 after creditors exercised their right to bring forward the schedule from 2012. Ukrtelecom says that it is continuing to negotiate a return to a preliminary schedule of payments and further delay the proposed date of redemption of the outstanding debt. The government expects to finalise the sale of a 92.8% stake in the national PTO to a local unit of Austrian investment firm Epic by the end of this month.
Meanwhile, Ukrtelecom has released a prospectus to sell bonds valued at UAH250 million (USD31 million) in the period from 15 February 2011 to 13 January 2012.