Russia’s invasion influence on Investors, LOs and funded assets from Ukraine
War in Ukraine is affecting everybody!
Debitum is strongly against Russian aggression and we are supporting our partners and their employees in Ukraine. For investors, who purchased claim rights related to borrowers from Ukraine, it means that there is a Force Majeure situation that makes all processes different from usual conditions.
We want to remind you – only one Loan Originator Chain Finance had exposure to the Ukraine market. All other assets from Chain Finance and other loan originators perform as planned.
Chain Finance exposure in Ukraine comes via loans issued to a local regulated car leasing company based in Kyiv. The company had a stable financial situation before the war, and it was in talks with local financial institutions about further investments. All investments (claim rights purchased) related with Ukraine are at risk, there is a possibility to not gain expected return or loose principal invested.
Information about war-affected loans from Ukraine
In this situation, no guarantees such as BuyBack can take effect. Therefore, regular asset repayments will not happen until force majeure ends. The last interest was repaid on 28.02.2022 and it was sent to all involved investors.
Future and possible outcomes
- No principal or interest repayments will happen during Force Majeure.
- Penalty interest will not be applied as a reason for delayed payments is Force Majeure situation stipulated in the agreement.
- There is currently no clarity about the total assets repayments in the future. A lot depends on how and when the war in Ukraine ends and the future prospects of the company.