Ukraine to issue ten-year eurobonds at about 5% – source

The Ministry of Finance of Ukraine has begun preparations for the issue of euro-denominated eurobonds with a ten-year maturity period and a yield of about 5% per annum.

The ministry says the euro was chosen to support outgoing payments of the balance of payments, which are mainly denominated in euros, an informed source in the financial market has told UNIAN

For nine months of 2019, almost 43% of outgoing payments in the current account of the balance of payments have been carried out in euros against 23.5% of incoming payments in this currency.

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According to experts, the upcoming issue may amount to about EUR 1 billion.

"I expect the amount of EUR 1 billion. The new eurobonds should be large enough to be liquid in the market," ICU Group financial analyst Mykhailo Demkiv said.

The Ministry of Finance has not yet commented on the report.

As UNIAN reported earlier, the eurobonds worth EUR 1 billion were issued in June 2019 with a seven-year maturity period and a yield of 6.75% per annum. The issue took place after a 15-year break.