Головна сторінка
/
Новини
/

Ukraine repays its USD 1 bln Eurobond due June 4

Ukraine repays its USD 1 bln Eurobond due June 4

5 June 2014

Ukraine’s Finance Ministry fully repaid its USD 1 bln Eurobond and paid the last coupon on June 3, according to an official release from the ministry. The bond, issued in June 2012, was due on June 4.

 

Alexander Paraschiy: While the June 2014 bond offered yields comparable to distressed bonds, there was a low risk that Ukraine would not repay it. Last month, the government received USD 4.2 bln from the IMF and buyers of U.S.-guaranteed notes, which was more than enough to cover this obligation, with no other big repayments due this month.

 

We believe the repayment of June’s Eurobond will positively affect the prices of the shorter corporate Eurobonds of Ukrainian issuers. The presence of this high-yield bond, which had made the sovereign curve deeply inverted, offered a good explanation for the high yields of the bonds of Naftogaz (NAFTO) and PUMB (PUMBUZ), which mature in 2014.

 

The government still has to repay totally USD 2.4 bln in ForEx debt till the year end, as well as help to repay the USD 1.6 bln Eurobond of state monopoly Naftogaz (NAFTO), which matures in end-September. The gas monopoly clearly lacks money to repay its Eurobond, and it can only count on state support.

 

Given that Naftogaz’s bond is guaranteed by the government, and the latter is not going to spoil its relations with potential international donors like the IMF, we see a high probability that Naftogaz’s debt will be repaid smoothly.

Останні новини

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...