Ukraine has completed the issuance of new Eurobonds

11/2/18

On 1 November 2018, the Ministry of Finance completed settlement of its new dual-tranche benchmark Eurobond offering: U.S.$750,000,000 tranche with the final maturity on 1 February 2024 (“long” 5-year) and U.S.$1,250,000,000 tranche with the final maturity on 1 November 2028 (10-year). The new Eurobonds have been admitted to trading on the Main Securities Market of Euronext Dublin.

Overall, the investor base in both tranches was consistent: asset managers and funds accounted for 82% and 79% of allocations in the “long” 5-year and 10-year tranches, respectively, followed by hedge funds (12% and 13%, respectively) and insurance and pension funds (4% and 5%, respectively). The remaining 2% and 3% in the “long” 5-year and 10-year tranches has been allocated to banks and
private banks, respectively.

Investors from the United States and United Kingdom have assumed the major share of allocations in both tranches – 46% and 41%, respectively, in the “long” 5-year tranche and 37% and 46%, respectively, in 10-year tranche. Investors from Continental Europe bought 12% and 16% in the “long” 5-year and 10-year tranches, respectively, with the remaining 1% in both tranches allocated to investors
from other locations.

As planned, a share of the proceeds from the new Eurobond issuance was used to redeem Ukraine’s U.S.$725,000,000 zero coupon short-term debt securities issued on 28 August 2018. The remaining proceeds were transferred to the account of the State Treasury and will be used for general budgetary purposes.

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