Ukraine redeems second bond issued during 2015 restructuring

Ukraine’s Finance Ministry repaid on maturity the
Eurobond issued in late 2015 as a part of a sovereign debt restructuring task,
the ministry reported the same day. Initially, MinFin issued 1.78 bln in
Eurobonds maturing Sept. 1, 2020. In September 2017, Ukraine bought back USD
0.42 bln of these bonds, while in August 2020 it sold USD 0.33 bln of these
bonds as a part of a deal to buy back Ukraine’s GDP-linked securities. In this
way, the total amount of the bonds due on Sept. 1, 2020 was USD 1.69 bln. In
addition to the bond’s redemption, MinFin also paid USD 0.40 bln of coupons on
the bonds restructured in 2015 (maturing on Sept. 1 of each year, 2020-2027).

Ukraine is scheduled to pay USD 1.6 bln on its
international debt obligations by the end of 2020, MinFin reported.

Alexander Paraschiy: Together
with scheduled payment to the IMF and coupon on MinFin’s 2032 Eurobond, Ukraine
is scheduled to pay externally over USD 2.5 bln in September. Such intensive
payment schedule will likely lead to decrease of the nation’s gross
international reserves which currently stay at multi-year record levels. As
Ukraine’s budget deficit is expected to widen fast by the end of the year, it
is possible that MinFin will try to issue new Eurobonds this autumn.