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Ukraine’s Cabinet to re-profile domestic state bonds in National Bank portfolio
13:42, 4 October 2017
Ukraine’s Cabinet to re-profile domestic state bonds in National Bank portfolio

The bonds will be issued in 40 separate issues, the securities will be repaid from 2025 to 2047

13:42, 4 October 2017

Open source

Ukraine’s Cabinet of Ministers approved an operation on re-profiling of domestic state loan bonds in the National Bank's portfolio. The decision was made during today's government meeting, Ukrainian News reported.

It is noted that there are domestic state bonds in the amount of 13,5 billion dollars in the National Bank portfolio at the moment. The government approved the issue of long-term and long-term inflationary government bonds for 8,5 billion dollars.  

The bonds will be issued in 40 separate issues, the securities will be redeemed from 2025 to 2047. The coupon rate on bonds with redemption from 2025 to 2035 will be from 8,12% to 11,3% per annum, the coupon period will be 6 months. The rate for the remaining securities will be at the level of 12-month inflation plus 2,2%.

Related: Ukrainian Eurobonds admitted to trading at Irish Stock Exchange

If the inflation is zero or deflation occurs, the yield will be paid at 2,2% per annum.

As it was reported earlier, on August 9, the Cabinet canceled the decision to re-profile state bonds in the NBU portfolio. Prime Minister of Ukraine Volodymyr Groysman noted that the Ministry of Finance and the NBU did not reach an agreement.

On September 26, Ukraine received 1.32 billion dollars revenue from the placement of EurobondsAs noted by the Ministry of Finance, such a transaction was carried out to reduce the peak load on the state budget to pay off the public debt in 2019-2020. These funds will be used to finance the general fund of the state budget.

Related: Ukraine raises $3 billion from placement of Eurobonds for 15 years, - Poroshenko

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