Ukraine Plans Eurobond Issue in May, Pays Off 2000 Eurobonds

The government has redeemed its USD and EUR-denominated amortizing bonds issued in 2000 with a series of add-ons in the following two years. The government also paid the first coupon on its CHF 768 mln 12-year Eurobonds. Oleksandr Klymchuk: The redeemed bonds were issued as an exchange for the previous issues, which was part of a successful government plan to restructure its 60%-to-GDP debt. Now the debt is at a comfortable 15% (12% -direct, 3% – guaranteed) to GDP level that grants the government a much better credit profile. The Finance Ministry also announced plans for a new Eurobond placement in May, which confirms our expectations from November 2006. The government gave no details, previously it was hinting at denominating the issue in USD or EUR, though we still don’t rule another Samurai Market appearance.