Ukraine to convert USD 1bn debt to VTB in Eurobonds.

By bne IntelliNews July 2, 2012
Ukraine will convert the remaining half of its USD 2bn debt to VTB into Eurobonds, VTB Chairman Andrei Kostin told. To remind, VTB provided a six-month bridge loan to Ukraine in June 2010 totaling USD 2bn at 6.7% per annum. Later Payments were due in June 2012 as the six-month loan was extended three times to a total of 1.5 years. Under the contract signed in late May 2012, 50% of the debt, USD 1bn, was cancelled on June 6, 2012 and the remaining 50% for USD 1bn restructured until June 4, 2014. In accordance with the deal, Ukraine issued USD 1bn in bonds. The remaining part of the debt to VTB will be repaid in a similar way. According to Kostin, the term of the Eurobonds will probably be around two years. The interest rate will be a market rate, he said.

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