The Finance Ministry of Ukraine expects to increase the country’s rating after the placement of Eurobonds

© RIA Novostiall Kiev. Archival photoThe Finance Ministry of Ukraine expects to increase the country’s rating after the placement of Eurobonds© RIA Novosti

The Ministry of Finance of Ukraine after the placement of Eurobonds expect in the future raising the sovereign rating of the country and reduce the cost of future borrowings, said Minister of Finance of Ukraine Alexander danyluk.

Ukraine last week, has placed a 15-year Eurobonds for $ 3 billion with a yield to maturity of 7.375%. The issue provides for four equal amortization payments in years 2031-2032. As was stated by the Deputy Minister of Finance of Ukraine Yuriy Butsa, almost all of Ukraine’s Eurobonds were purchased by investors from the United States.

«…In the future, because we solved the problem by 2019, we expect that our sovereign rating will improve and the cost of future borrowings will decline,» said danyluk in a Saturday interview to the Ukrainian weekly ZN.ua.

He explained that the placement of Eurobonds has allowed Ukraine to reduce the debt burden on the budget in 2019-2020.

«As a result of earlier restructuring, we have received significant peaks payments in those years. This is a significant risk. And thanks to the work of our professional team and attracted the investment company we have found a solution how to minimize these risks, reducing peak payments. This part of the operation will bring unique benefits to the state, because it will reduce the cost of financing, including for business and can improve our credit ratings. We talked with all rating agencies, for them, this peak payments in 2019-2020 was a significant barrier to improving our ratings told the Minister.

Earlier danyluk said that the exit of Ukraine on the Eurobond market and attract $ 3 billion took the risk of default in 2019-2020.

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