Ukraine plans to attract $2 billion in borrowings on foreign markets in 2018 and 2019
Ukraine plans to attract $4 billion in borrowings on foreign markets in 2018 and 2019, Finance Minister Oleksandr Danylyuk told reporters at the 14th annual Yalta European Strategy meeting.
“We plan, and this is in the IMF program, to raise $2 billion in 2018 and another $2 billion in 2019. This is our benchmark. Of course, the amounts could ultimately differ,” the minister said.
Next week Ukraine is scheduled to issue the first eurobonds in 3 years. The proceeds are expected to be used to buy back eurobonds maturing in 2019 and 2020, when the peak state debt repayments are expected. The maximum amount which can be issued in eurobonds is limited to $1.5 billion.
The last market placement of Ukrainian eurobonds was in April 2013, when Ukraine sold 10-year eurobonds amounting to $1.25 billion at 7.5% per annum. In February 2013, the Ministry of Finance placed $1 billion in 10-year eurobonds at 7.625% per annum.
Since then Ukraine has gone to the foreign loan markets another four times: in December 2013, $3 billion in eurobonds were sold to Russia at a coupon rate of 5%, and in 2014-2016 Ukraine sold eurobonds under American guarantee once per year. In 2014, $1 billion in five-year eurobonds were placed at 1.844% per annum, in 2015, $1 billion at 1.847% and in 2016, $1 billion at 1.471%.
On January 25, 2017, the Ukrainian company Kernel placed $500 billion in eurobonds at 8.75%, becoming the first Ukrainian issuer to place bonds since the Revolution of Dignity (excluding bonds guaranteed by the US government as part of US financial aid to Ukraine).