(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.
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.