Ukraine to buy back all offered USD 1.58 bln in 2019-2020 Eurobonds

Ukraine’s Finance Ministry reported on Sept. 18 it has
received offers to buy USD 1.161 bln in 2019 Eurobonds and USD 0.415 bln in
2020 Eurobonds and is going to satisfy all of them. The purchase price of the
2019 and 2020 notes was set at 106.00% of par and 106.75% of par, respectively.
Following the buyback, the total amount of the 2019 and 2020 notes outstanding
will remain USD 0.661 bln and 1.365 bln, respectively. MinFin is going to
repurchase the bonds on about Sept. 25. Ukraine is going to finance the
repurchase via the issuing of longer Eurobonds.

Alexander Paraschiy: This is the
first time in Ukraine’s history that the government is offering an early
repayment on part of its debt. Following the repurchase, Ukraine’s external
debt repayment schedule for the next three years will be eased substantially,
from USD 11.0 bln (for 2018-2020) to USD 9.46 bln. That improves the risk of
debt sustainability and allows us to expect that Ukraine will use the gained
experience to further ease peak repayments in future years.