Ministry of Finance of Ukraine announces pricing on $3bn Eurobond issue

9/19/17

THIS ANNOUNCEMENT IS NOT BEING MADE IN AND COPIES OF IT MAY NOT BE DISTRIBUTED OR SENT INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN.

Today, Ukraine announces the pricing of its first stand-alone Eurobond issue since the 2014 Euro-Maidan Revolution. The new issue is a benchmark bond in a principal amount of $3,000,000,000 with final maturity on 25 September 2032 and amortising in four equal instalments on 25 March 2031, 25 September 2031, 25 March 2032 and 25 September 2032. The bond will bear interest at a rate of 7.375% per annum. The new issue is expected to be rated B- by Standard & Poor’s and B- by Fitch. Settlement of the new issue is expected to take place on 25 September 2017.

The total indications of interest for the new issue amounted to US$9.5bn across circa 350 investors at the height of the bookbuilding process.

A portion of the net proceeds of the new issue will be applied by Ukraine to fund the repurchase of $1,160,905,000 of its 7.75 per cent. Notes due 2019 and $415,152,000 of its 7.75 per cent. Notes due 2020 , together with accrued interest through the settlement date (expected to be 25 September 2017), in accordance with the terms of the tender offer announced by the Ministry of Finance of Ukraine on 7 September 2017. The remaining net proceeds of the new issue will be used for general budgetary purposes.

The Minister of Finance of Ukraine, Oleksandr Danylyuk, commented: “Today marks an important milestone in Ukraine’s macroeconomic and financial history. The success of this transaction is more importantly the result of the hard work and dedication of Ukraine’s people and the combined efforts of the Ukrainian President, government and parliament who have dramatically changed our country over the last three years.”

BNP Paribas, Goldman Sachs International and J.P. Morgan Securities plc acted as joint lead managers on the transaction.

The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Ukraine represented by the Minister of Finance of Ukraine acting upon instructions of the Cabinet of Ministers of Ukraine does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States.

This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

This announcement is not an advertisement of securities in Ukraine, and is not an offer or invitation to, or solicitation of, any such circulation, distribution, placement, sale, purchase or other transfer of the securities in the territory of Ukraine. It is not intended to be and must not be publicly distributed in or into Ukraine.

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