Ukraine preparing to place international Eurobond, media say
6 September 2017
Ukraine’s Finance Ministry has hired BNP Paribas,
Goldman Sachs and JP Morgan to arrange an international Eurobond placement,
Reuters reported on Sept. 5, citing anonymous sources. No official comments
have been made by state officials so far. Ukrainian officials already expressed
their intention earlier this year to raise USD 0.5-1.0 bln by year’s end from
such a placement. The last time Ukraine tapped the international fixed income
market was in mid-2013, before the outbreak of war.
Alexander Paraschiy: Our understating is that Ukraine’s new Eurobond placement is possible
only after the approval of the next IMF loan tranche. The preparation for
placement suggests MinFin sees the fifth IMF tranche under the EFF program is
realistic and will arrive as early as October. We believe it’s likely that some
state banks (Ukreximbank and Oschadbank) will follow MinFin by also trying to
issue new Eurobonds to partially refinance the older issues, which bear excessively
high interest rates.
only after the approval of the next IMF loan tranche. The preparation for
placement suggests MinFin sees the fifth IMF tranche under the EFF program is
realistic and will arrive as early as October. We believe it’s likely that some
state banks (Ukreximbank and Oschadbank) will follow MinFin by also trying to
issue new Eurobonds to partially refinance the older issues, which bear excessively
high interest rates.
