The Cabinet of Ministers of Ukraine at a meeting on Oct. 4 approved the new decision on reprofiling of government domestic loan bonds owned by the National Bank of Ukraine (NBU).
The Finance Ministry said that the debt transaction will allow cutting the risk of refinancing of the state debt that will be repaid in 2017-2020.
Deputy NBU Governor Oleh Churiy said at the government meeting that the central bank backs reprofiling of securities.
As of Oct. 4, the NBU has government domestic loan bonds for Hr 361 billion in its portfolio. Bonds for Hr 219.6 billion will be exchanged, while the conditions for the bonds worth around Hr 141 billion will be left unchanged (average rate for them is 12.3 percent per annum).
Long-term government domestic loan bonds for Hr 74.4 billion and long-term inflation pegged bonds for Hr 145.17 billion will be issued. Their face value will be Hr 1,000.
The maturity term for the securities is from seven to 31 years. The bonds will be settled in the single payment (on May 10 or Nov. 10, depending on the issue).
The interest rate for bonds to be due in the period from 2025 through 2035 is within 8.12-11.3 percent per annum depending on the issue. The coupon is accrued once in six months.
The interest rate for bonds to be due in the period from 2036 through 2047 is set at the level of 12-month inflation recorded no earlier than in two months before the date of paying the coupon plus 2.2 percent per annum. The coupon is paid once a year.
According to the government’s decision accrued and unpaid coupon for government domestic loan bonds that are to be exchanged should be paid in cash by the NBU.
