Page 59 - UKRRptDec19

8.5.1​ Fixed income - bond news
Ukreximbank has placed $100mn worth of Eurobonds with a maturity of 10 years and a rate of 9.95%.​ Ukraine’s third-largest bank, Ukreximbank has assets of $8.4bn. The placement was not made to raise additional capital, but to retire Eurobonds coming due next year. Organized by JPMorgan and Morgan Stanley, the issue was oversubscribed three times. The bank reports that final investors were from: Switzerland - 30%; UK - 29%; US - 26%; other EU - 9%; and Asia - 6%. By type, investors were: asset managers and funds - 61%; hedge funds - 21%; banks and private banks - 18%.
DTEK​ Renewables places debut €325mn Eurobond.​ ​DTEK Renewables, a subsidiary of Ukraine’s leading energy holding DTEK and the biggest green energy producer, placed its debut Eurobond for €325mn, Interfax-Ukraine reported on November 5. The placement rate was 8.75%, according to Interfax. The bond has a coupon rate of 8.50% paying semi-annually, matures in November 2024 and is callable in 2021. The bond has a preliminary rating of B (EXP) from Fitch Ratings (on par with sovereign) and B- (EXP) from Standard & Poor’s (one notch below sovereign). As of end-September, DTEK Renewables operated wind and solar plants of a total capacity of 571 MW and it is planning to raise its total capacity to 950 MW by the end of 2019. It expects its 2019 EBITDA will reach €141mn, while its total debt (including the new bond) should reach €753mn by the year end, implying gross leverage of 5.3x. In 2020-2022, the company expects its EBITDA will be €251-252mn and its gross leverage should fall to 2.7x in 2020 and 2.2x in 2022.
Ukrainian state-owned Ukreximbank is going to raise $100mn via a subordinated Eurobond​, according to an unnamed source quoted by news agency Interfax on November 7. The expected interest rate for the issue is
59​ UKRAINE Country Report​ December 201 ​ ​www.intellinews.com