Ukraine raises USD 0.5 bln from additional 8Y Eurobond placement

Ukraine’s Finance Ministry priced its USD 0.5 bln
additional issue of 8-year international bonds on July 22, it reported the same
day. The issue was priced at 6.30% yield. MinFin noted that the final order
book of USD 1.7 bln helped to lower the yield by 32.5 bps from the initial
yield target and by 57.5 bps from the yield at the primary placement in April.

“We limited the size of the transaction as we remain
committed to our strategy of covering most of our external borrowing needs with
concessional financing”, said the Finance Minister Serhiy Marchenko.

Evgeniya Akhtyrko: The high
demand indicates that the latest additional issue of international Eurobonds
was a success. These government’s receipts are essential given its weak ability
to generate new borrowing at the local bond market recently.

It also was very important to hear that cooperation
with IFIs is still the government’s priority for completing international
borrowing in 2021. This means that the government is likely to make additional
efforts in order to reach more progress in issues that have been pointed out by the IMF recently.