Today, Ukraine announces the pricing of its first stand-alone Eurobond issue since the 2014 Euro-Maidan Revolution. The new issue is a benchmark bond in a principal amount of $3,000,000,000 with final maturity on 25 September 2032 and amortising in four equal instalments on 25 March 2031, 25 September 2031, 25 March 2032 and 25 September 2032. The bond will bear interest at a rate of 7.375% per annum. The new issue is expected to be rated B- by Standard & Poor’s and B- by Fitch. Settlement of the new issue is expected to take place on 25 September 2017.
The total indications of interest for the new issue amounted to US$9.5bn across circa 350 investors at the height of the bookbuilding process.
A portion of the net proceeds of the new issue will be applied by Ukraine to fund the repurchase of $1,160,905,000 of its 7.75 per cent. Notes due 2019 and $415,152,000 of its 7.75 per cent. Notes due 2020 , together with accrued interest through the settlement date (expected to be 25 September 2017), in accordance with the terms of the tender offer announced by the Ministry of Finance of Ukraine on 7 September 2017. The remaining net proceeds of the new issue will be used for general budgetary purposes.
The Minister of Finance of Ukraine, Oleksandr Danylyuk, commented: “Today marks an important milestone in Ukraine’s macroeconomic and financial history. The success of this transaction is more importantly the result of the hard work and dedication of Ukraine’s people and the combined efforts of the Ukrainian President, government and parliament who have dramatically changed our country over the last three years.”
BNP Paribas, Goldman Sachs International and J.P. Morgan Securities plc acted as joint lead managers on the transaction.
For more details Ministry of Finance of Ukraine