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September 22, 2017 www.intellinews.com I Page 27
bne:Credit
Ukraine plans $3bn Eurobond placement in 2018
Ukraine will seek to place Eurobonds for UAH90.3bn or around $3bn (under the forecast hryvnia exchange rate of UAH30.10 per US dollar) in 2018 with 10- and 15-year maturity, according to the draft bill on the national budget of Ukraine for 2018.
The sum is outlined in the attachment to the budget bill that has just been posted on the website of the country's parliament, the Verkhovna Rada, Interfax news agency reported on September 19.
Earlier, the country's Finance Minister Oleksandr Danyliuk said that the Ukrainian authorities will borrow up to $2bn on the foreign market in 2018, and the same amount in 2019. According to the minister, the International Monetary Fund (IMF)'s programme agreed with Kyiv in 2015 contains such a possibility. "These are
our benchmarks. Of course, the sums could differ," Interfax news agency quoted him as saying.
On September 18, Ukraine placed $3bn in 15-year Eurobonds at 7.375% per annum, after Kyiv mandated JP Morgan, BNP Paribas and Goldman Sachs as bookrunners for its new Eurobonds issue. The deal has become the first market placement for the country since the victory of the popular uprising in February 2014.
In 2018, Kyiv also intends to raise around $30mn from the International Bank for Reconstruction and Development (IBDR) to finance the general fund of the national budget, according to the draft budget bill.
Ukraine's leading coal and power holding DTEK could seek refinancing of its debt in 2018 after a successful return of Ukraine to the foreign borrowing market, the company's CEO Maksym Timchenko told reporters on September 20.
"We are all in anticipation of the indicator on the placement of Ukrainian securities, which is a litmus test for the cost of debt for corporate placements," Interfax news agency quoted Timchenko as saying. "If the situation is the same and it improves in Ukraine, then, of course, we will consider the possibility of various options for refinancing or other ways to manage our debt in 2018."
DTEK completed the restructuring of its Eurobonds at end-2016. The company, which is owned by billionaire Rinat Akhmetov, converted a set of old Eurobonds ($160mn maturing in March 2018 and $750mn maturing in April 2018) into a single issue now maturing in December 2024.
DTEK could seek refinancing in 2018