REUTERS
The Cabinet of Ministers of Ukraine has approved the terms of placement of Ukraine's Eurobonds issued for the first time since 2014, having instructed the Finance Ministry to place external state loan bonds worth US$3 billion with an annual interest payment at an annual rate of 7.375%, according to Cabinet Resolution No. 696, published on the government website.
According to the document, the securities worth $1.682 billion will be issued for the exchange and/or redemption of Ukraine's external state loan bonds in 2015 at a price of $1,060 for $1,000 of the nominal value of the first series of bonds and $1,067.5 for $1,000 of the nominal value of the second series, as well as for payment of accrued interest on these securities.
Interest income on new bonds will be paid annually on March 25 and September 25, starting from March 25, 2018.
The bonds will be redeemed in equal installments of 25% par value on March 25 and September 25, 2031, as well as on March 25 and September 25, 2032.
As UNIAN reported earlier, September 18, Ukrainian President Petro Poroshenko claimed that Ukraine had entered the borrowing market and raised $3 billion for 15 years.
On the same day, the Finance Ministry announced the redemption from investors of Ukraine's Eurobonds worth $1.6 billion, maturing in 2019 and 2010.
The Ukrainian delegation on September 11-14 held roadshow meetings with investors in London, New York, and Boston ahead of the issuance of dollar-denominated external state loan bonds.
According to the cooperation program with the International Monetary Fund, Ukraine at the end of 2017 will return to the market of foreign commercial borrowings and issue Eurobonds worth $1 billion.
According to the preliminary prospectus of Ukraine's Eurobond issue, the country will have to pay out $64.196 billion in foreign and domestic debts over the next five years.