Ukraine placing 2033 eurobonds for $2 bln at 7.253%

14:56, 24.07.2020 1 min read

Ukraine has announced the pricing of new 12-year eurobonds maturing in 2033 in the amount of $2 billion, denominated in U.S. dollars with a yield of 7.253%.

"It is expected that the new issue will be assigned "B" ratings by the rating agencies Standard&Poor's and Fitch. Settlements for the new issue are due on July 30," the Finance Ministry said.

The ministry also reminded that part of proceeds from the new issue will be used to buy back eurobonds with maturity in 2021 and 2022 and a nominal yield of 7.75% per annum for a total of $846.15 million.

"Despite challenging times for developing countries, Ukraine continues to implement its debt management strategy by actively managing public debt to mitigate refinancing risks. At the same time, this transaction complements our efforts to maximize the amount of concessional financing available to Ukraine to ensure sufficient stock of liquidity in the current conditions," Finance Minister Serhiy Marchenko said.

As reported, the deal is organized by Goldman Sachs and J.P. Morgan.