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Ukraine set to float $ 1bn in Eurobonds this fall

"The market has honed an appetite for us."

Ukraine set to float $ 1bn in Eurobonds this fall
Photo: Photo: Julia Berezovska/NBU

Ukraine seeks to place first in the past year eurobonds this fall, Ukrainian Finance Minister Oleksandr Danylyuk told The Wall Street Journal in Washington.

The government plans to return to the international bond market after the long-delayed pension reform is adopted.

"I believe there is already an appetite for us on the market, but I believe that we should not be in a hurry," said Danylyuk.

He also confirmed the plans of Ukrainian Cabinet to carry out land reform.

The last time Ukraine floated Eurobonds was in April 2013, when Ukraine sold 10-year Eurobonds worth 1.25bn dollars at 7.5% per annum. In February 2013, the Ministry of Finance placed 10-year Eurobonds worth 1bn dollars at 7.625% per annum.

Since that time, Ukraine has four more times entered foreign borrowing markets: in December 2013, Eurobonds worth 3bn dollars with a coupon rate of 5% was sold to Russia, and in 2014-2016 Ukraine sold Eurobonds once a year under American guarantees.

In 2014, Ukraine floated five-year Eurobonds for 1bn dollars at 1.844% per annum, in 2015 - 1bn dollars at 1.847% per annum, and in 2016 - 1bn dollars at 1.471%.

On January 25, 2017, the Ukrainian company Kernel placed Eurobonds worth 500mn dollars at 8.75% annual, becoming the first Ukraine issuer to place bonds since the Dignity Revolution (except for bonds guaranteed by the US government in the framework of financial assistance to Ukraine).