City of Kyiv pays coupon on 2015 notes

The council of the City of Kyiv (CITKIE) paid a USD 10 mln coupon on its USD 250 mln notes maturing in November 2015, according to a May 8 press release of Khreschatyk bank, the issue’s paying agent.

Roman Topolyuk: The city of Kyiv is continuing to duly service its debt, as the interest payments are covered by the city’s 2015 budget. The next coupon payment to watch, worth around USD 14 mln (on the 2016 Eurobonds), is scheduled to be paid on July 13, 2015. At the same time, redemption of the 2015 notes, scheduled for Nov. 6, is out of the city’s discretion as Kyiv’s 2015 budget doesn’t foresee the principal’s redemption. Recall, all of Kyiv’s Eurobonds are part of the government’s debt operation process that was approved by the IMF in March 2015. The conditions of restructuring these notes may be similar to those of sovereign Eurobonds with comparable duration. As both Eurobonds issued by Kyiv are trading at YTMs lower than that of their sovereign benchmark, both notes are of no interest, in our view.