Fitch Ratings has assigned the City of Kyiv's upcoming domestic bond issue an expected Long-Term Rating of 'B(EXP)', Fitch said on its website.

"Kyiv's bond issue rating is equalised with the city's Long-Term Issuer Default Rating since the bond will be a senior, unsecured obligation and rank pari passu with the city's other senior unsecured obligations," Fitch said.

As reported, early September, the Kyiv City Council approved a bond issue for UAH 1.496 billion, which will consist of four series: Series I for UAH 600 million with maturity on March 30, 2021, Series J for UAH 300 million with maturity on April 30, 2021, Series K for UAH 296 million maturing on July 30, 2021 and Series L for UAH 300 million maturing on October 29, 2021.

The interest rate on bonds is up to 11% per annum, the coupon is paid quarterly, except for Series I, on which interest will be paid monthly.

The bond will be issued through a public offer without issuing a bond prospectus; the city also intends to select one underwriter for all series and conclude an agreement with the exchange.

Fitch said that the City of Kyiv is the capital of Ukraine and its economic and financial center with a population approaching three million inhabitants and gross city product accounting for about 23% of the country's GDP.