Ukraine raises USD 2bn in Eurobonds

Ukraine borrowed money in the international capital markets for the first time in three years at interest rates lower than Greece, which shows that the country’s economy is improving. Ukraine issued USD 2bn in two bonds on Friday 17th of September, paying investors a coupon interest rate at 6.9% for five year debt and 7.8% for ten year loans. It is better compared with Greek bond yields of 11.8% for five year maturities and 11.5% for ten year loans.

Ukraine originally tried to issue a Eurobond this summer, but it has put off the issue until autumn, betting on improved market conditions and renewal of cooperation with the International Monetary Fund, which would lower borrowing costs. During the summer, the market has been ready to pay 9.0% for a ten year issue, while the government has been looking at a yield of 7.0%.

Source: Financial Times