You're reading: Source: Ukraine places eurobonds worth $2 billion at 9.25% per annum

The Finance Ministry of Ukraine on Tuesday placed five-year eurobonds worth $2 billion at a price equal to 100% of their face value, a source familiar with the details of the transaction has told Interfax-Ukraine.

According to him, the interest rate on the securities for the entire period of their circulation until July 24, 2017 is set at 9.25% per annum.

According to the interlocutor of the agency, it was initially planned to place eurobonds worth $1 billion, but when compiling a book of applications the sum was doubled.

The organizers of the deal are JPMorgan, Morgan Stanley, VTB Capital, Sberbank of Russia and Troika Dialog. The agency failed to get the confirmation of the deal from the ministry.

As reported, Ukraine, which in June 2012 repaid half of a two-year $2 billion loan to Russia’s VTB, is to securitize the remaining debt in eurobonds which the bank expects to obtain in July and offer them on the market.

Ukraine in the third quarter of 2012 plans to borrow Hr 18 billion, including Hr 8 billion, or $1 billion, in funds that could be borrowed on the foreign market, reads the Finance Ministry’s foreign debt management plan.

The volume of the state debt repayment in the third quarter of 2012 will amount to Hr 17.6 billion.