The Ukrainian Finance Ministry is currently preparing for the issue of Ukrainian eurobonds against U.S. guarantees worth $1 billion, and the ministry expects that the funds from their placement will arrive in the middle of May, Ukrainian Finance Minister Natalie Jaresko has said.
“[The eurobonds will be issued] late this week or next week. We’re now in the process,” she said when answering a question about the terms of the U.S.-backed eurobonds.
She said that the United States had confirmed that in 2015 Ukraine will have $2 billion in additional guarantees.
She said that the amount is included in the International Monetary Fund’s Extended Fund Facility (EFF) program in the part of $7.5 billion international financial assistance, which is complementary to the IMF’s loan worth $17.5 billion.
As reported, U.S. loan guarantees for the second tranche of Ukrainian eurobonds worth $1 billion will become effective on April 24, 2015, according to a statement issued by USAID.
“The loan guarantees shall ensure the Borrower’s repayment of 100 percent of principal and interest due under such borrowings. The full faith and credit of the United States of America is pledged for the full payment and performance of such guarantee obligations,” the statement reads.
As reported, Ukraine placed U.S.-government-guaranteed eurobonds worth $1 billion in the middle of May 2014. Their yield was only 28 basis points higher than that of U.S. T-bills and was a record low rate for Ukraine, being 1.844 percent per annum.
The said the bonds will mature on April 30, 2019. The issue was organized by JP Morgan and Morgan Stanley.
In April-May 2015, Ukraine planned to issue another tranche of guaranteed eurobonds worth $1 billion.
U.S. Vice President Joe Biden had previously reassured Ukrainian President Petro Poroshenko that the United States is ready to provide $1 billion in loan guarantees as part of the financial bailout for Ukraine in 2015.
