Ukraine has placed EUR 1.25 billion eurobonds at 4.375% per annum, the Finance Ministry of Ukraine reported late on Wednesday.

"Ukraine announces the pricing of the new benchmark eurobonds in euros in a principal amount of EUR 1.25 billion with a final maturity of January 27, 2030. The newly issued notes will bear interest at the rate of 4.375% per annum," the ministry said on its website.

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 January 27, 2020," the ministry said.

The total indications of interest for the new issue peaked in excess of EUR 7 billion from more than 350 investors globally.

The proceeds of the new offering will be used for general budgetary purposes, the ministry said.

"Today we are happy to announce the pricing of a benchmark 10 year EUR-denominated bond at a record low coupon of 4.375%, attracting demand from over 350 investors worldwide and putting a second dot on our euro curve," the ministry said, citing Finance Minister Oksana Markarova.

"In fact, thanks to this effective solution, we are saving UAH 2 million per day for the national budget. And this money will be channeled to social and economic development programs," Prime Minister of Ukraine Oleksiy Honcharuk said in his Telegram channel, commenting on the placement of the eurobonds.