Ukraine: Foreign Exchange (FX) UAH repatriation - Change of regulation
Note: This announcement, originally published on 19 May 2023, has been updated to correct the wording.
Following Announcement A23023, Clearstream Banking1 advises clients that the National Bank of Ukraine has issued one regulation that comes into force on 22 May 2023 and amends the current UAH repatriation process.
According to Regulation #68, dated 19 May 2023, holders of securities eligible for repatriation have the obligation to hold these securities for a period of 90 calendar days (CDs), prior to the payment date of the interest/coupon derived from government bonds in UAH, to be eligible for FX/repatriation.
Clients should note that principal redemption derived from government bonds, including the so-called “military bonds” is out of scope and remains unrepatriable until further notice.
Impact on clients
The Regulation amends the FX/repatriation of the next week coupon payment scheduled on 24 May 2023 for the following ISINs:
- UA4000201255
- UA4000206460
- UA4000207880
Clearstream Banking will issue a corporate action event (OTHR) via MT564 to provide the clients in favour of whom the proceeds have been received, the option to send a confirmation of indemnity. If the confirmation of indemnity is received, Clearstream Banking will perform the FX/repatriation to those clients on their regular accounts.
This indemnity (the “Indemnity”) in the context of the UAH FX/repatriation event (the “Event”) serviced by Clearstream Banking S.A. (“CBL”):
We hereby represent and warrant, in the context of the Event, that (i) we or any of our underlying clients have retained the securities for a period of 90 calendar days prior to the coupon/interest payment, (ii) no request of FX/repatriation from us or any of our underlying clients has occurred in deviation from the framework in place with the official local regulation issued by National Bank of Ukraine (“NBU”) (the “Warranty”).
We certify that we have performed all the necessary checks and due diligence to fully satisfy ourselves as to the accuracy of the Warranty and have obtained all supporting documents (if any) in relation thereto (the “Certification”).
We hereby agree that we shall assume full responsibility in relation to the accuracy, reliability or completeness of the above Warranty and Certification.
In consideration of the above, we expressly agree that we shall fully indemnify, defend and hold CBL harmless from and against, any and all claim levied against CBL, loss, liability, damage, judgment, settlement, fine, penalty, demand, cost or expense suffered by CBL (including, without limitation, fees and expenses of defending itself or enforcing this agreement) arising out of or in connection with this Indemnity; including any claims, penalties, taxes and interest thereon, levied by any competent authority in connection with the Warranty and/or the Certification, or in respect of any other costs incurred, in connection with any action taken by CBL in reliance upon the content of this Indemnity.
This Indemnity shall be governed and construed in accordance with the law of Luxembourg.
Further information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.