Ukraine has placed five-year Eurobonds worth USD 1 billion guaranteed by the United States at a yield rate that is 32 basis points higher than the yield rate of similar United States government bonds. The Interfax news agency reported this, citing Bloomberg.
This is the second time Ukraine is raising funds at a record-low yield rate, with a United States loan guarantee fully covering all the risks.
The organizers of the transaction were Citi, JP Morgan, and Morgan Stanley.
Ukraine issued the first United States-guaranteed bonds for USD 1 billion in May last year. The yield rate of the bonds was 1.844% per annum or 28 basis points higher than the yield rate of United States government bonds maturing on 30 April 2019. The organizers of the bond issue were JP Morgan and Morgan Stanley.
According to media reports, Kiev could receive United States government guarantee for another USD 1 billion later this year.
In the spring, the IMF and Ukraine concluded an Extended Fund Facility loan agreement worth a total of USD 17.5 billion, which will be disbursed in tranches over several years. Including the funds from the IMF, the country secured a total of about USD 40 billion in international financial support, out of which USD 15 billion will be savings through restructuring of the country’s existing debts.