Ukraine has placed $1 billion in five-year U.S.-backed eurobonds at a yield of 32 basis points over U.S. Treasuries, according to Bloomberg.
Thus, for the second time Ukraine has raised money at a record low rate due to U.S. guarantees fully covering all the risks of the borrowing.
The organizers are Citigroup, JP Morgan and Morgan Stanley.
Ukraine placed the first issue of bonds worth $1 billion against U.S. guarantees in May 2014. Their yield exceeded that of U.S. treasuries maturing on April 30, 2019 by 28 basis points. The organizers were JP Morgan and Morgan Stanley.
Ukraine and the United States signed a security agreement for another $1 billion in Kyiv on May 18. The guarantees provide the borrower’s 100% repayment of the loan principal and interest accrued thereon.
