Ukreximbank places USD 300 mln in UAH denominated 3Y notes

Ukreximbank, a state-owned Ukrainian bank, last week placed UAH 2.385 bln (USD 300 mln) worth in 3Y notes with an annual coupon of 11% at par. Mykyta Mykhaylychenko: This can be deemed a quite successful placement as UAH 2Y sovereign debt bids were within 9.5%-11% in the most recent local UAH bond auction while Ukrexim’15 USD denominated notes are trading now at 7.5% YTM and USD/UAH 1Y NDF – within 8% of the current exchange rate. Importantly, the bank can use UAH proceeds to expand its loan portfolio more freely under much severe provisions requirements for FX-denominated by the Ukrainian regulator National Bank of Ukraine.