Ukraine placing $1 bln in 5-yr notes, yield guidance 37.5 bps over UST
MOSCOW. Sept 22 (Interfax) - Ukrainian is placing $1 billion in five-year notes backed by the U.S. government with yield guidance around 37.5 basis points against US Treasuries, a banking sector source told Interfax.
Citi, J.P. Morgan and Morgan Stanley are organizing the offering.
The Ukrainian government earlier approved $1 billion in five-year Eurobonds guaranteed by the U.S. government at an upper rate of 2.5% per annum with a view to obtaining financing by the end of September.
"This means this resource will be received by the end of September," Prime Minister Volodymyr Groysman said at a Cabinet meeting.
"The final rate will be set after today's pricing later. The pricing will appear today at around 6:00," Finance Minister Oleksandr Danyliuk said.
Ukraine placed $1 billion in five-year U.S.-secured Eurobonds on May 27, 2015 with yield exceeding similar U.S. bonds by 32 basis points at 1.847% per annum. Citi, J.P. Morgan and Morgan Stanley organized the deal.
The first $1 billion in U.S.-backed Eurobonds were issued in 2014. The yield was 28 basis points more than U.S. bonds due April 30, 2019 at 1.844% per annum. J.P. Morgan and Morgan Stanley organized that deal.