Ukraine is preparing to issue $1 billion in Eurobonds in the fall
In his interview with The Wall Street Journal, Finance Minister of Ukraine Oleksandr Danyliuk stated that Ukraine is preparing for the issuance of one billion dollars in Eurobonds in the fall.
“The government plans to return to the international bond market after long-term pension reform is adopted. I believe that there is already an appetite for us in the market. But I believe that we should not be in a hurry," said Danyliuk.
He also confirmed plans by the Cabinet to carry out land reform.
The last issuance of Ukrainian Eurobonds was in April 2013, when Ukraine sold 10-year Eurobonds worth $1.25 billion at 7.5% per annum. In February 2013, the Ministry of Finance issued 10-year Eurobonds worth $1 billion at 7.625% per annum.
Since then, Ukraine has entered foreign lending markets four more times: in December 2013, Russia was sold Eurobonds worth $3 billion at a coupon rate of 5%; and in 2014-2016, Ukraine sold Eurobonds once per year under American guarantees. In 2014, five-year Eurobonds were deposited for $1 billion at 1.844% per annum; in 2015, for $1 billion at 1.847% per annum; and in 2016, for $1 billion at 1.471%.
On January 25, 2017, the Ukrainian company Kernel issued Eurobonds worth $500 million at a rate of 8.75%, becoming the first issuer from Ukraine to issue bonds since the Revolution of Dignity (except for bonds guaranteed by the U.S. government within the framework of financial assistance to Ukraine).