Ukraine To Make Second CHF Denominated Eurobond Placement

The Finance Ministry has announced plans for a second Eurobond issue for CHF 374 mln in December. This will be the second tranche of the Eurobond placement Ukraine made in mid-September and will have the same volume and terms. In September, the Government sold 384 mln Swiss francs ($306 million) of 12-Year Eurobonds. Oleksandr Klymchuk: We expect the twin-issue to be made in early December. The bonds of the first issue have a par value of 100,000 CHF, a 3.5% coupon paying semiannually and a put option exercisable on Sept. 15, 2009, giving bond holders the option to cash out early. The bonds were offered at a 2.6% discount to par value and were placed by Morgan Stanely. The terms imply a yield to maturity at 3.77% and yield to put at 4.44%, or respectively 130 bps and 195 bps over the CHF benchmark yield curve. Since September long-term Swiss sovereigns are down by about 20 bps, thus it is not clear what the Finance Ministry means by “same terms” – the same yields or the same spread over the Swiss sovereign yield curve.