Ukraine cancels international bond placement
2 July 2020
Ukraine’s MinFin has decided to cancel its planned
placement of a 13-year Eurobond, Interfax-Ukraine reported on the morning of
July 2, citing its sources.
On the evening of June 1, Bloomberg reported that
MinFin has completed its book building for a new Eurobond, deciding to issue
USD 1.75 bln notes maturing in March 2033 with a coupon rate of 7.304%. Out of
the raised amount, USD 0.75 bln had been planned to be used for a partial
repurchase of Eurobonds maturing in 2021 and 2022.
Just after the information on the closed book building
appeared, the first reports surfaced in Ukraine that National Bank governor Yakiv
Smoliy filed a resignation request.
Alexander Paraschiy: The cancellation is a reasonable move by MinFin, taking into account
that the bond’s pricing that was valid as of mid-day on July 1 was no longer
adequate by the day’s end.
