Ukraine placed Eurobonds for $3 billion under 7,375% per annum with 15 years maturity, said the President of Ukraine Petro Poroshenko.
“Today we can sum up the first results. Ukraine has entered the debt market and raised $3 billion And attracted a record row – never before has Ukraine had not attracted such a volume, never attracted for a term of 15 years. It is an incredibly positive assessment by investors of the reforms taking place in Ukraine. This is when each investor with their dollar votes for the success of the reforms”, – he said during the meeting with international investors in new York (USA).
According to the head of the Ukrainian state, the yield of the Eurobond issue amounted to 7,375%.
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“Today we already have the first figures of the drawing: if the previous paper – “short paper” cost of 7.75%, then today the price reduced to 7,375% , and this saving of state budget funds to service the foreign debt,” – said Poroshenko.
He also noted that Ukraine took only borrowing and piling up debt, and “today’s borrowing is a financial cushion, a financial platform for further reforms.”
Poroshenko thanked the partners of Ukraine: the international monetary Fund, the world Bank, the International Finance Corporation, the European Bank for reconstruction and development, which together with Ukraine “have carried out reforms and today the world recognizes their effectiveness.”
“This is reform in the energy sector, and reform of deregulation, and reforms to create a brand new steps for the business climate, and preparation to the privatization process and most importantly – it makes cheaper any involvement, and Ukrainian businesses are entering foreign markets”, – said the President of Ukraine.
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The new deal was the first market placement for the country in 2013, whereas Ukraine has sold 10-year Eurobonds for $1.25 billion with a yield of 7.5% per annum. During 2014-2016, annually Ukraine placed 5-year Eurobonds worth $1 billion, debt securities were guaranteed by the United States that allows the country to borrow at record low interest rates – for example, last year the yield of Eurobonds of Ukraine amounted to 1,471%.
In 2015, was restructured 13 issues of Eurobonds of the country for a total of $14.36 billion and 0.6 billion euros, investors agreed to write off about 20% of the main debt and transfer payments for the remaining 4 years. The coupon rate all of the restructured editions was set at 7.75% per annum.