REUTERS
The Ukrainian government has carried out a successful issue of $1 billion U.S. government-backed bonds, and the funds raised have been transferred to the accounts of Ukrainian government, it has been reported on the Web site of Ukrainian Ministry of Finance.
"This was made possible owing to the signing on May 18 of the Safeguards Agreement on borrowing between Ukraine and the United States," the statement reads.
The interest rate on Eurobonds is 1.847% per annum, with interest payment to be carried out twice a year (on May 29 and November 29 respectively). The bonds mature on May 29, 2020.
As UNIAN reported earlier, the first issue of US-backed five-year bonds worth $1 billion was conducted in May last year at a rate of 1.844% per annum, higher only by 0.28% per annum against similar U.S. T-bills, with the subscription to those bonds amounting to $3.4 billion.
At the end of January 2015, Ukraine and the United States signed the Declaration on granting to Kyiv a credit guarantee from the U.S. government worth $2 billion. At the same time, U.S. Treasury Secretary Jacob Lew said that the U.S. government intended to increase the package of loan guarantees to $3 billion, subject to implementation of reforms in Ukraine in the fields of combatting corruption, the energy sector, and business climate improvement.