Ukraine to complete 5Y Eurobond issuance

Ukraine plans to complete placement of 5Y sovereign Eurobonds with an average yield of 6.375% on yesterday, June 9, Interfax reported yesterday. Ukraine’s 2011 state budget envisages the attraction of USD 4.5 bln in Eurobonds; USD 1.5 bln was already placed in 10Y notes with an average yield of 7.95% (3M Avg 7.4%) in February. Svetlana Rekrut: We do not expect excessive market demand for the new sovereigns given the issue’s low yield and ongoing concern over debt problems in Greece. At the same time, a yield higher than 6.375% is very much unlikely due to sufficient state budget performance YTD and the rapid growth in public debt in 2011 (+3.9% in 1Q11). The placement might be closed if VTB or another underwriter has committed to buy the bonds.