Ukraine to take EUR 250 mln loan from Cargill

Ukraine’s cabinet approved on Aug. 17 the conditions of
the loan it plans to take from Cargill Financial Services International, the
government’s website reported the same day. Based on the approved resolution,
Ukraine will borrow from Cargill up to EUR 250 mln – split into 3Y and 5Y loan
tranches – at an annual rate of 5.95% and 6.85%, respectively.

Alexander Paraschiy: The
conditions under Cargill’s private loan look close to market rates, taking into
account that Ukraine’s public six-year debt (EUR-denominated Eurobond maturing
in June 2026) trades currently at 6.61% YTM. The loan will allow Ukraine to
partially compensate the large foreign currency debt outlays of
August-September, which amount to about USD 3 bln.