Ukraine places $3bn in 15-year Eurobonds at 7.375%

By bne IntelliNews September 19, 2017

Ukraine has placed $3bn in 15-year Eurobonds at 7.375% per annum, Ukrainian President Petro Poroshenko said during a meeting with international investors in New York on September 18.

"Ukraine has entered the loan market and raised $3bn with a record maturity – never before has Ukraine raised such an amount for a 15-year period," Interfax news agency quoted Poroshenko as saying. "This is an incredibly positive assessment by investors of the reforms that are taking place in Ukraine, when each investor votes with his dollars for the success of reforms."

Earlier, Kyiv mandated JP Morgan, BNP Paribas and Goldman Sachs as bookrunners for its new Eurobonds issue. Ukraine's roadshows took place in London on September 11-12, in New York on September 13, and Boston on September 14. A global conference call for investors took place on September 15.

The orderbook for the Eurobonds was six times oversubscribed, Poroshenko added in New York. "This is a clear indicator that the whole world today is voting with money for belief in Ukraine and for the efficiency of our reforms," he said. Yields were also down from the initial indicative yield of 7.75%, due to the high demand.

The move followed Danylyuk’s statements that Ukraine will return to foreign capital markets after receiving a new tranche from the International Monetary Fund (IMF), as it would be "a positive signal" for investors. According to Danylyuk, the value of the potential placement would be around $1bn (€0.93bn).

Investor demand for the bond was high as it follows on from a string of exotic and risky bond issues. Belarus issued a $1.4bn twin-tranche bond in June, which has preformed very well since, with spreads tightening by 100bp. And in September Tajikistan made its debut with a $500mn bond that yielded 7.125% and was heavily oversubscribed. Bond investors are hungry for yield and banking on the general economic recovery in all these countries to underpin these bond issues. Russia restarted an effort to offer $4bn of swaps to lengthen the maturity of its debt – reversing earlier remarks on postponing the deal -- and is expected to issue the new bonds in September. 

Related Articles

Kazakhstan’s Bank of Astana SPO to be first ever placement of foreign bank on Moscow Stock Exchange

Kazakhstan’s Bank of Astana (Astana Banki) plans to conduct a secondary offering of shares (SPO) on the Moscow Stock Exchange, RNS news agency reported last week. Bidding will begin on December 14. ... more

Albania’s central bank to issue new high-denomination banknote

The Albania’s central bank has announced it will issue a new ALL10,000 (€74.9) banknote. The new ALL10,000 banknote will have the highest value issued so far, as the current biggest value ... more

Troubled Tajik bank Agroinvestbank begins asset sales as it struggles to recapitalise

Tajikistan’s troubled Agroinvestbank announced last week its intention to start selling off assets as its funds are insufficient for returning depositors’ money. The bank aims ... more

Dismiss