– Ukraine has determined the final parameters of the issue of 15-year Eurobonds: a volume of $3 billion, the yield 7,375%, reported “Interfax” a source in banking circles.
The organizers of the deal are BNP Paribas, Goldman Sachs and JP Morgan. Road show of Eurobonds was held last week in London, Boston and new York. In the course of collection of bids, Ukraine has managed to significantly reduce the yield of the issue: the original reference was 7.75 percent, then it was downgraded to the level of about 7,625 final range amounted to 7,375-7,5%, the placement will be at its lower boundary. Debt securities of the country enjoyed a substantial demand among investors, the volume of the order book, according to preliminary data, amounted to about $9.3 billion.
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Eurobonds are depreciation of the structure: repayment will be in four equal tranches in years 2031-2032.
Simultaneously with the placement of the new issue the Central Bank buys sovereign bonds maturing in 2019 and 2020. Requests from investors for redemption of Eurobonds were accepted until September 15. On Monday, the Ministry of Finance of Ukraine informed that following the results of the offer will be redeemed two Eurobond issues amounting to $1,576 billion Price of redemption of Eurobonds maturing in 2019 is set at 106% of face value, in 2020 – 106,75% of the nominal value
The new deal will be the first market placement for the country in 2013, whereas Ukraine has sold 10-year Eurobonds for $1.25 billion with a yield of 7.5% per annum. During 2014-2016, annually Ukraine has placed five-year Eurobonds worth $1 billion, debt securities were guaranteed by the United States that allows the country to borrow at record low interest rates – for example, last year the yield of Eurobonds of Ukraine amounted to 1,471%.
In 2015, was restructured 13 issues of Eurobonds of the country for a total of $14.36 billion and 0.6 billion euros, investors agreed to write off about 20% of the main debt and transfer payments for the remaining 4 years. The coupon rate all of the restructured editions was set at 7.75% per annum.
Russia, which has refused to participate in the restructuring, suing Ukraine in respect of repayment of Eurobonds for $3 billion, bought on the money of the national welfare Fund in December 2013. The Minister of Finance of the Russian Federation Anton Siluanov in an interview with Bloomberg TV in September said that until the judicial process Russia will not interfere with the placement of Ukrainian Eurobonds.