Ukraine preparing to issue EUR-denominated Eurobond, media report
10 June 2019
Ukraine’s Finance Ministry is planning to place seven-year
international bonds denominated in euros, the Interfax-Ukraine news agency
reported on June 10, citing its anonymous sources. The government is launching
its roadshow in Europe today, the source said.
Alexander Paraschiy: The timing
of the new Eurobond placement looks good for Ukraine, given that its
seven-year, USD-denominated Eurobond is priced today at its twelve-month high
(yielding slightly below 8.0%). EUR-denominated bonds trade at a negative
spread of 150-200 bps to USD bonds, so there is a solid chance for Ukraine to
place the new issue at about 7.0% or below. If it’s successful, this placement
could be supportive for Ukraine’s dollar yield curve, as well as for the
country’s fiscal sustainability for the rest of 2019.
