Ukraine has announces the successful settlement of its new 12-year U.S.$-denominated eurobonds and the completion of the switch tender offer for its 2021 and 2022 notes.
"On July 30, 2020, Ukraine announced the successful settlement of its new U.S.$2,000,000,000 7.253% eurobond due 2033 (the 'Notes'), as well as the completion of the switch tender offer in relation to its outstanding U.S.$-denominated 7.75% senior notes due 2021 and U.S.$-denominated 7.75% senior notes due 2022," Ukraine's Finance Ministry said on its website.
The notes have been admitted to trading on the regulated market of Euronext Dublin.
Following the completion of the switch tender offer, the total aggregate amount of U.S.$-denominated 7.75% senior notes due 2021 still outstanding is U.S.$ 974,146,000 and the total aggregate amount of the U.S.$-denominated 7.75% senior notes due 2022 still outstanding is U.S.$ 1,013,354,000.
With this transaction, Ukraine increased its average debt maturity and contributed to building a smooth state debt repayment profile.
"This is a challenging year for emerging markets' issuers, as all countries face the need to finance much wider deficits than initially envisaged. Despite that, we managed not only to return to the market after ensuring a sufficient amount of concessional financing to cover Ukraine's deficit but also proactively tackle the upcoming maturities to decrease the refinancing risks for the coming years. We are aiming to continue the implementation of our Medium-Term Debt Management Strategy, with a proactive approach to debt management being a key component," Yuriy Butsa, Government Commissioner for Public Debt Management, was quoted as saying
The investor base of the full deal was dominated by asset managers, which accounted for 81% of the notes issued and tendered, followed by hedge funds (13%), banks (4%) and insurance and pension funds (2%).
Investors from the United States, the United Kingdom and Continental Europe have generated the majority of demand in the new eurobond's primary offering, with 48%, 38% and 13% of allocations, respectively.
The total indications of interest for the new issue and tender offer peaked in excess of U.S.$7 billion from over 200 investors globally.
Goldman Sachs International and J.P. Morgan acted as Joint Lead Managers and Joint Dealer-Managers on the transaction.