Ukraine places Eurobonds totaling $ 2 billion of 5.25-year $ 0.75 billion with a yield of 9.0 percent and a 10-year $ 1.25 billion with a yield of 9.75 percent, writes Reuters, citing a source. The yield on 5-year tranche (he long, maturing in February 2024) 9% per annum, 10-year — 9,75%. The initial benchmark is equal to, respectively, about a 9.25% and about 10%.
Another source adds that the coupon rate on five-year Eurobonds set at 8,9945% per annum, 10-year — 9,75% annual.
As noted earlier, lead managers and bookrunners of the loan are BNP Paribas, Citi, Goldman Sachs International and JP Morgan.
The last time the Finance Ministry went to the capital markets with a public distribution of external loan in September 2017 and has attracted $ 3 billion for 15 years at 7,375% per annum.
For a brief description of activities in the context of the impact on ordinary citizens, it is worth noting that this successful placement, and in a very difficult time Ukraine was able to enter the market and still raise the two billion dollars that was earmarked in the budget, expected by the government. This will allow to Finance the costs to return to financial markets and the release of new tools and refinance old tools.
This is a pragmatic solution to the Ukraine with debt, which it should do. On the hryvnia exchange rate, then the bonds can only be influenced positively because of receipt of two billion dollars in Ukraine is a positive step that will lead to a substantial increase in the reserves of the national Bank and stabilization of the currency market.