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8.5.1 Fixed income - bond news
Ukraine’s largest pipe and railway wheel producer Interpipe had priced $300mn of new 5-year notes at 8.375% yield to maturity on May 6, according to a May 7 report by Bloomberg. Interpipe intends to use 50% of proceeds for general corporate purposes, including, subject to market conditions, for reducing the amount of performance securities outstanding. The other 50% of proceeds might be used for paying a special dividend to shareholders, according to Bloomberg. Settlement is expected on May 13.
Naftogaz has postponed the issue of eurobonds due to market conditions, but intends to be ready for their placement in September 2021, Naftogaz Head Yuriy Vitrenko has said. "Due to market conditions, the issue was postponed. This was not my decision, it was made by Chief Financial Officer of Naftogaz Petrus van Driel. We will now do everything to be ready to issue bonds in September," he said in an interview with Novoye Vremia Vitrenko said the issue of eurobonds was also postponed in 2020 due to unfavorable market conditions.
Ukrainian pipe and wheel company Interpipe placed $300mn of Eurobonds that mature in 2026 on the Luxembourg Stock Exchange, the company said on May 13. The coupon rate for the Eurobonds was 8.375% per annum, Interfax Ukraine reports. Applications came from about 50 investors, including an international financial institution. The investor base of the new issue consists mainly of asset management companies, which account for
56 UKRAINE Country Report XXXX 2018 www.intellinews.com