VTB refinances $1 bln loan to Ukraine at 7.95% - Ukrainian MinFin
KYIV. June 5 (Interfax) - Ukraine will issue bonds worth $1 billion at 7.95% for Russia's VTB in order to refinance a loan earlier drawn from the bank, Ukraine's Deputy Finance Minister Anatoliy Myarkovsky told journalists in Kyiv on Tuesday.
He said that these bonds would mature in two years.
Myarkovsky did not specify the other terms for the issue.
VTB presented Ukraine a six-month bridge-credit worth $2 billion in June 2010 at 6.7%. Later, VTB transferred the rights on the loan to VTB Capital, which is part of VTB Group. The payment of $2 billion on the loan was slated for June 2012. The loan has been thrice extended by a total of 18 months.
Ukraine's Finance Minister Yuriy Kolobov signed an agreement on May 31 for this with VTB Capital. The agreement stipulates that Ukraine pay part of the loan ($1 billion), as well as accumulated interest, on June 6, 2012. The remaining $1 billion should be paid on June 4, 2014.