: :inin Kyiv (EET)

Ukraine places Eurobonds worth $1 bln at lowest ever interest rate – Finance Minister


Ukraine has placed U.S. government-guaranteed Eurobonds to the tune of $1 billion at a rate of 1.471% per annum, the lowest rate in the country`s history, Finance Minister of Ukraine Oleksandr Danylyuk wrote on Facebook.

”We have placed U.S.-secured Eurobonds worth $1 billion at an annual rate of 1.471%, the lowest rate in the history of Ukraine. This is yet another proof that we are moving on the right path. This is another victory. This is another outcome of fruitful cooperation between the president and the government,” the minister wrote.

 On September 22, the Cabinet of Ministers decided to issue U.S.-secured government external loan bonds to the tune of $1 billion maturing in five years, with a 2.5% margin interest rate. The finance minister of Ukraine noted the final interest rate is yet to be approved.

Earlier, Prime Minister Volodymyr Groysman stated that the bonds should be issued immediately, and it was expected that the funds raised would be transferred to the county`s budget by the end of September.

 The receipt of funds became possible following the positive decision of the International Monetary Fund to resume lending to Ukraine and disburse the third tranche of loan funds under the Extended Fund Facility approved by the IMF in March 2015.

 As UNIAN reported earlier, the government of Ukraine on June 3 signed an agreement with the U.S. government on the provision of loan guarantees worth $1 billion in the framework of agreements reached by leaders of both countries.

 The funds to the tune of $1 billion that will be raised through the issue of bonds under U.S. loan guarantees will be channelled to the state budget`s general fund and invested in the social security of the most vulnerable groups, also due to the increase in gas prices.

 This is the third loan warranty received by Ukraine from the United States. The previous two warranties granted in 2014 and 2015 enabled Ukraine to obtain $2 billion on the international capital market at a record low-interest rate and to use them for the implementation of the reform program.

UaPositon

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