The Ministry of Finance of Ukraine, in the process of additional placement of eurobonds maturing in 2033, increased its volume from the initial $500 million to $600 million and, due to three times more demand, was able to reduce the rate from the initial 6.4% to 6.2%, a source in banking circles told Interfax-Ukraine.
“The bid book is already closed, the final rate is 6.2%,” the source said.
There is no official information about the placement yet.
At the same time, another market participant said that the additional placement led to a decrease in the quotations of these securities on the market by about 50 basis points, to 109.6% of the nominal. Earlier, experts pointed to a high probability of Ukraine entering the market with new external borrowing at the end of 2020 after positive signals from the IMF and other international partners. The EU this week allocated 600 million euros to Ukraine after a long delay in a tranche of macro-financial assistance, arguing that Ukraine in recent weeks has renewed its commitment to continue cooperation with the IMF and reaffirmed its commitment to the political program agreed with the EU.
As reported, at the end of July, Ukraine placed new 12-year eurobonds maturing in March 2033 in the amount of $2 billion with a yield of 7.253%. Goldman Sachs International and J.P. were joint lead managers and joint dealer managers of the transaction.
Morgan. Paribas and Goldman Sachs were the organizers of the additional placement in December.
