Ukraine to Sell $1 Billion of Eurobonds in July, Kostin Says
Ukraine’s government will sell $1
billion of Eurobonds next month to refinance part of a loan from
VTB Group, the head of Russia’s second-biggest lender said.
The Eurobonds will probably be issued for two years and
will carry a “market” interest rate, VTB’s Chief Executive
Officer Andrei Kostin told reporters today in Ukraine’s capital,
Kyiv.
The former Soviet republic received a $2 billion six-month
loan from VTB in 2010 and extended it three times. The loan had
an interest rate of 6.7 percent and was used to help cover the
budget gap, which the Cabinet wants to keep within 1.7 percent
of economic output this year.
The government repaid $1 billion to VTB this month, Kostin
said.
Ukraine plans to issue securities with an annual coupon of
7.95 percent this month, First Deputy Finance Minister Anatoliy
Myarkovskyi said June 5. The yield on Ukrainian government bonds
due 2013 fell to 9.5129, the lowest since May 22, as of 7:30
p.m. in Kyiv, data compiled by Bloomberg show.
To contact the reporter on this story:
Daryna Krasnolutska in Kyiv at
dkrasnolutsk@bloomberg.net;
To contact the editor responsible for this story:
Balazs Penz at
bpenz@bloomberg.net