Ukraine prices 10-year Eurobond at 4.375%, raises EUR 1.25 bln

Ukraine’s Finance Ministry announced on Jan. 22 the
pricing of its new Eurobond denominated in euros. The ten-year bond with an
expected B credit rating (by Fitch and S&P) was priced at a 4.375% rate.
Total bids for the bond exceeded EUR 7 bln, and the resulting amount of the
issue will be EUR 1.25 bln. Settlements will be made on Jan. 27.

Alexander Paraschiy: The timing
of this bond’s issue was well-selected considering its interest rate was the
lowest in Ukraine’s history. Indeed, it fell in line with our estimate yesterday (4.2%-4.7%).
Ukraine’s 2020 state budget foresees about USD 5 bln in external borrowing, so
it’s likely the government will tap the market for new Eurobond issues later
this year.