Crimea plans UAH 400 mln local bond issue

The Autonomous Republic of Crimea is planning to issue UAH 400 mln in five-year local bonds, its parliament was due to approve the measure at a meeting today, May 12, Interfax reported. A draft resolution was approved by the government of Crimea on Monday. The coupon on the bonds is to be no more than 16% p.a., paid quarterly. Proceeds from the issuance will be used to cover the Crimean budget deficit, allowing for investment & innovation projects, road & transportation improvement, reforming housing and communal services, vehicle purchases and production and other services. Crimean Finance Minister Pavel Tokarev said that repayment of the loan would be done via the sale of non-agricultural land (UAH 220 mln) and assets (UAH 200 mln) that Crimea plans to conduct over the next five years, with the surplus going to the budget.