ISE lists $1 bln in Ukrainian Eurobonds, issued to refinance VTB loan
KYIV. Aug 31 (Interfax) - The Irish Stock Exchange (ISE) on August 30 listed $1 billion in Ukrainian Eurobonds, which were issued to partially refinance a VTB loan raised in 2010, the exchange said on its website.
In June 2010, VTB provided Ukraine with a $2 billion, six-month bridge loan at 6.7% per annum. Later, VTB ceded the rights on its loan to Ukraine to VTB Capital. Payment fell in June 2012, but the half-year loan was extended three-fold by an additional 1.5 years.
At the end of May, Ukraine signed a contract with VTB Capital stipulating that $1 billion and the interest on the entire lo
an amount should be paid on June 6, 2012, and that the remainder of the loan should be paid on June 4, 2014. Later, First Deputy Finance Minister Anatoliy Myarkovsky said that under the agreement with VTB, Ukraine will replace the second half of the loan with a new issue of foreign two-year bonds at 7.95% per annum.
At the end of June, VTB's CEO Andrei Kostin said that the bank plans to receive Eurobonds in July and offer them to the market. "In June, the Ukrainian government paid for half of the debt - $1 billion. We plan to reissue the second part into securities, Eurobonds, and issue them on the market at market prices in July," he said.
However, in the middle of July Ukraine placed $2 billion in new five-year Eurobonds at 9.25% per annum.