Ukraine expects USD 1 bln from Eurobonds in September, minister says

Ukraine has completed all the preconditions for placing USD 1 bln in Eurobonds under U.S. guarantees, Finance Minister Oleksandr Danyliuk told an investment conference in London, reported the ministry’s Facebook page on Sept. 9.

Alexander Paraschiy: IMF cooperation was the key precondition for USD 1.0 bln in Eurobonds under U.S. guarantees and a EUR 1.2 bln loan from the EU. It was confirmed last week that the IMF will consider issuing the next loan tranche at its Sept. 14 executive board meeting, whih is being perceived as a very positive signal and probably why Danyliuk mentioned the potential Eurobond placement by the end of the month. 

We share this optimism and also anticipate the arrival of USD 1.0 bln under U.S. guarantees shortly after the IMF decision, as well as the approval of a EUR 0.6 bln loan from the EU (out of EUR 1.2 bln scheduled for this year). Those loans coupled, with an anticipated USD 1.0 bln from the IMF, should boost gross international reserves to USD 17 bln by the end of 2016.