The National Bank of Ukraine (NBU) has streamlined regulations on payment transactions of Ukrainian companies relating to eurobonds.
To simplify terms and conditions and reduce the cost of the international placement of proprietary eurobonds by Ukrainian companies, the NBU has introduced the following amendments:
- A EUR 2 million annual cap was lifted off transactions to distribute income on and redeem eurobonds, as well as other issuer transactions for the purpose of placing such securities;
- Foreign currency is allowed to be bought to be deposited in the issuer's own account with a Ukrainian bank until the eurobond liabilities mature.
"Ukrainian economy requires additional funds for development, more than ever," noted Yuriy Heletiy, NBU Deputy Governor. "One of such sources are foreign borrowings."
Observing the growing interest of Ukrainian companies in attracting foreign funding, including through eurobond placement, the NBU decided to "streamline the terms and conditions for raising funds and increase capital inflows into the Ukrainian economy and promote the country's investment potential," the official added.
The amendments come into effect on April, 27, 2021.
