Ukraine's Finance Ministry plans to send some funds from the placement of new eurobonds to buy back six-month $725 million securities placed at the end of August 2018, according to a preliminary offering memorandum for the new eurobonds, a copy of which has been sent to Interfax-Ukraine.

"The funds from the placement will be sent to finance the buyback of discount eurobonds for the amount of $725 million issued on August 28, 2018 and total budget expenses," the ministry said in the document.

As reported, at the end of August 2018, the country entered the international loan market with a private placement of government foreign loan bonds for $725 million. The six-month discount bonds were placed at 95.551% of their face value, which equals to the yield of 9.1% per annum, according to estimates of the National Bank of Ukraine (NBU). This issuance was subscribed by worldwide leading investors who have reaffirmed their financial support to Ukraine, while volatile conditions continue to prevail in emerging credit markets.

On October 23, Ukraine launched a road show for new 10-year eurobonds. In addition, there is a possibility of placing five-year bonds.