Ukraine Makes USD 1 bln Eurobond Placement

Ukraine sold USD 1 bln in Eurobonds with a 10 year maturity yesterday. The bonds have a yield of 6.58%. Credit Suisse, Deutsche Bank and UBS managed the issue. Oleksandr Klymchuk: This issue has the lowest coupon ever for a USD denominated Ukrainian sovereign Eurobonds, however, it was attracted at substantial premium of 197 bps over US Treasury bonds of similar maturity. Other Ukrainian sovereign Eurobonds with five and seven-year maturities are traded at 149 and 159 bps respectively over comparable US Treasury bonds. This issue increases Ukraine’s sovereign external debt to USD 9.2 bln or 9.1% of 2006’s estimated GDP.