U.S. intends to provide Ukraine with $1 bln loan guarantee - Secretary of Commerce Pritzker
KYIV. Oct 26 (Interfax) - U.S. Secretary of Commerce Penny Pritzker has said that her country's leadership intends to provide a loan guarantee for $1 billion to Ukraine.
Speaking after a meeting with Ukraine's President Petro Poroshenko in Kyiv on Monday, Pritzker announced that the U.S. president and the Congress intend to take steps with respect to the third credit guarantee for $1 billion to Ukraine in the coming months, and that Washington will fulfill its promise to consider the possibility of providing such a loan guarantee which was made at the end of 2015.
The United States' first issue of bonds for $1 billion under a guarantee to Ukraine was placed in May 2014. The yield then was 28 basis points higher than the yield of U.S. state bonds with maturity on April 30, 2019 and amounted to 1.844% per annum. JP Morgan and Morgan Stanley organized the placement.
A year later, in May 2015, Ukraine placed five-year Eurobonds for $1 billion under U.S. guarantee with a yield that exceeded the same U.S. state bonds by 32 basis points. Citi, JP Morgan and Morgan Stanley were the organizers.
Later the Ukrainian Finance Ministry said that it is planning to raise $1 billion under U.S. guarantees in November 2015.