Ukraine to place 12Y Eurobonds, tenders 2021, 2022 Eurobonds with premium
30 June 2020
The Ukrainian government has offered to purchase
Eurobonds maturing in September 2021 and 2022 at 103.5% and 104.2% of par,
respectively, according to media reports. The total indicative amount that the
government is going to purchase is USD 0.75 bln (excluding accrued coupons). To
finance the purchase, Ukraine is preparing an issue of 12-year Eurobonds,
Interfax-Ukraine reported on June 30.
The tendered bonds traded at 102.6% and 103.7% of par
yesterday, according to Bloomberg. Currently, there are USD 1.409 bln of 2021
notes and USD 1.384 bln of 2022 notes outstanding.
Alexander Paraschiy: Following
the arrival of IMF and E.U. money, this is indeed a good time to offer new
Eurobonds. At the same time, the repurchase of existing bonds in a year when
the government is expecting a record-high budget deficit (over USD 10 bln) is
illogical, especially taking into account that the government is offering a
premium to the bonds’ par. The only explanation for such debt liability
management is the government’s possible attempt to reach a record-low interest
rate on the new bonds. So we will look forward to seeing whether it will
succeed in that.
