Government Mortgage Institution Announces USD 200 mln Local Bond Issue

The Government Mortgage Institution announced plans yesterday to issue 10 series of five-year bonds with a 9.5% coupon for almost USD 200 mln in local currency. The placement is schedule to begin on December 29 and will end on December 28, 2007. Olkesandr Klymchuk: The Government Mortgage Institution is similar to the U.S.’s Fannie Mae, and was created by the government to facilitate mortgage lending. The Government Mortgage Institution will raise funds by issuing bonds under government guarantees, and will receive a smaller amount of financing from the State Budget. This first issue of USD 200 mln (UAH 1 bln) was negotiated more than half a year ago, but was awaiting authorization to receive governmental guaranties. This is another big step in the development of the Ukrainian fund market.