Ukraine

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Journal

8:36 AM Friday, December 15, 2017
Finance
​Ukraine Returns to Market With $3 billion, 15-Year Eurobond at 7.375%
image/svg+xml Kyiv Lutsk Rivne Zhytomyr Lviv Ternopil Khmelnytskyi Uzhgorod Chernivtsi Vinnytsia Chernigiv Sumy Kharkiv Poltava Cherkasy Kirovohrad Lugansk Dnipropetrovsk Donetsk Zaporizhzhia Mykolaiv Odesa Kherson Simferopol Sevastopol Ivano- Frankivsk

LAUNCH: Ukraine $3b 15y at 7.375%

By Brian Smith
(Bloomberg) -- Final guidance on 15Y bond was 7.375%-7.500%
vs guidance of 7.625%a vs IPT of 7.75%a.
* UOP: To finance tender offer and for general budgetary
purposes
* Exp. issue ratings: B-/B- (S&P/Fitch)
* Senior, unsecured
* Reg S/144a
* Settlement: Sept. 25, 2017
* Redemption: 4 equal amortization payments in years 2031-2032
* Final maturity: Sept. 25, 2032 (WAL 14.25 years)
* Denoms: 200k/1k
* Law: English
* Listing: Irish
* Joint books: BNPP, GS, JPM
* Information from person familiar with the matter, who is not
authorized to speak publicly and asked not to be identified

----------------

By Lyubov Pronina and Natasha Doff

(Bloomberg) -- Ukraine is selling 15 year dollar- denominated bonds in its first international debt placement since Russia’s annexation of Crimea in 2014.

The eastern European nation has given initial-price
guidance of about 7.75 percent for the debt sale, according to a
person familiar with the matter, who is not authorized to speak
publicly and asked not to be identified. The nation’s $1.3
billion of Eurobonds maturing in 2027 currently trade with a
yield of about 7 percent.

Finance Minister Oleksandr Danylyuk conducted a London-New York-Boston road show last week for Ukraine's new Eurobonds. Before the trip, the Minister, a member of Parliament, spoke at the Rada (UNIAN)

Ukraine is making the most of exalted demand for high-

yielding securities to push back maturities on a debt load that
currently requires about $6.5 billion in principal and interest
payments over the next three years. After the bond sale, the
finance ministry will tender a buyback of Eurobonds due in 2019
and 2020, according a statement published last week.

BNP Paribas SA, Goldman Sachs Group Inc. and JPMorgan Chase
& Co. were mandated as joint bookrunners to arrange investor
meetings in London and the U.S. last week. Ukraine is rated six
levels below investment grade by S&P Global Ratings, the same
grade as Tajikistan, which sold $500 million of 10-year
Eurobonds earlier this month with a coupon of 7.125 percent.
A revolution and military conflict in 2014 curbed Ukraine’s
access to international debt markets and drained reserves,
forcing it to ask creditors including Franklin Templeton for
debt relief. The $15 billion restructuring, agreed to in 2015,
cut Ukraine’s foreign debt burden by 20 percent and pushed back
maturities by four years.

--With assistance from Marton Eder and Daryna Krasnolutska.


To contact the reporters on this story:
Natasha Doff in Moscow at ndoff@bloomberg.net;
Lyubov Pronina in Brussels at lpronina@bloomberg.net

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