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GISMETEO.RU
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Ukraine to tap markets for bond issue
Journal Staff Report

KYIV, Oct. 22 - Ukraine has mandated banks for its first long-dated international bond issue since last year’s stand-off with the International Monetary Fund, which halted a $17.5 billion bail-out package, the Financial Times reported on Monday.

BNP Paribas, Citi, Goldman Sachs and JPMorgan have been named as lead managers on the deal, which will be a 10-year, dollar-denominated bond. Ukraine may also sell five-year paper, depending on investors’ appetite.

The move comes just two days after the IMF agreed a new $3.9 billion assistance package with Ukraine, after the country’s government took the politically unpopular decision of meeting a key condition of the fund by raising household gas tariffs.

It is the first long-dated dollar debt since Ukraine raised $2.5 billion from investors last November; that was its first dollar bond since Russia’s annexation of the Crimea in 2014.

Last month an English court ruling gave Ukraine a boost in its long-running battle with Russia over the non-payment of $3bn of bonds sold by Ukraine in 2013.

The court’s ruling that the case should go to a full trial was widely interpreted by investors as a boost for Ukraine, given the explosive implications of Russia probably having to present evidence and sworn testimony from senior government officials.

Ukrainian ministers including Oksana Markarova, the acting finance minister, will hold a series of meetings with investors this week in preparation for the bond sale, which will take place “subject to market conditions” according to one of the banks involved.

Ukraine is rated B- by both S&P and Fitch, both with a stable outlook. (ft/ez)




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