Ukraine places additional eurobonds worth $600 mln

Ukraine on December 18 carried out transactions for the additional placement of external government loan bonds (eurobonds) in the amount of $600 million at a rate of 7.253%, maturing on March 15, 2033, worth an outstanding total of $2 billion.

That's according to the Ministry of Finance.

The additional issue saw a yield of 6.20% and an offer price at a secondary placement at 108.914%. Eurobonds are included in the official list and admitted to trading on the regulated market of the Euronext Dublin exchange.

The investor base of the entire transaction is predominantly composed of asset management funds (85%), hedge funds (13%), as well as pension and insurance funds (2%).

Who buys Ukrainian eurobonds

"The greatest demand was on the part of investors from the United States, United Kingdom, and continental Europe, who purchased most of the additional eurobond placement – their shares were 52%, 37%, and 10%, respectively. Investors from Asia bought 1% of the additional placement," Ministry of Finance said

Read alsoFinance ministry borrows almost UAH 51.5 blnThe funds from the additional placement were reportedly transferred to the accounts of the State Treasury Service to be used to finance the state budget.

Background

On December 11, Ukraine authorities did the pricing of an additional eurobond issue in the amount of $600 million.

In July, Ukraine placed 12-year eurobonds maturing in March 2033 for $2 billion at 7.25% per annum. Due to the said issue, Ukraine will buy back eurobonds maturing in 2021 and 2022 for a total amount of $846.15 million.