Moscow. September 22. INTERFAX.RU – the Cabinet of Ministers of Ukraine on Thursday approved the issue of Eurobonds for $1 billion under the guarantee of the United States with the aim of attracting financing to the end of September.
“This (approval of release plans – if) would mean that the end of the month this resource will be delivered to Ukraine. But we need to make some decisions,” – said Prime Minister of Ukraine Vladimir Groisman, opening a government meeting on Thursday.
According to him, these funds will support economic stability in the country.
The government of Ukraine approved the maturity of the securities to five years and a maximum coupon rate of 2.5% per annum. “Final borrowing rate will be established based on the results of the pricing later today. Today is the pricing, about six in the evening,” – said in the course of this decision, Finance Minister Alexander danyluk.
As previously reported, Ukraine and the United States in June signed an agreement on granting the Republic of the third tranche of credit guarantees of $1 billion, which will allow Ukraine to issue five-year Eurobonds and to draw on international capital markets of $1 billion at a rate of 2% per annum. The funds will be used for the social support of the most vulnerable segments of the population.
The first issue of bonds for $1 billion under the guarantee of the United States Ukraine posted in may 2014. Then the yield 28 basis points over the yield of US government bonds maturing April 30, 2019 and amounted to 1,844% per annum. The organizers were JP Morgan and Morgan Stanley.
A year later, in may 2015, Ukraine has placed five-year Eurobonds for $1 billion under the guarantee of the United States with a yield in excess of similar U.S. government bonds by 32 basis points. The organizers of the deal were Citi, JP Morgan and Morgan Stanley.