05 march 2018JSC Ukreximbank successfully completed the issue of its Ukrainian Hryvnia denominated three-year Eurobonds in the international capital markets
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For the second time in the history of Ukrainian issuers, JSC Ukreximbank entered the international capital markets to secure a long-term financing in Hryvnia in the form of a public offering. To date, the first and only similar transaction also involved JSC Ukreximbank in 2011.
JSC Ukreximbank appointed Citigroup Global Markets Limited and J.P. Morgan Securities plc as the joint lead managers and placed the Hryvnia denominated Eurobonds for a total principal amount of UAH 4,051 billion (the equivalent of approximately U.S.$150 million) at a fixed interest rate of 16.5% payable semi-annually and maturing in March 2021. This public offering has ultimately provided foreign investors with an opportunity to gain direct exposure to the Ukrainian local currency and interest rates.
The transaction benefitted from a strong demand from a number of international institutional investors situated in the United Kingdom, Germany, Switzerland and other European countries, as well as “offshore” investors.
The international rating agency Fitch Ratings has confirmed Hryvnia-denominated senior unsecured Eurobond issue a Long-Term rating of 'B- (emr)' and a Recovery Rating of 'RR4'.
Mr. Stefan Weiler, Managing Director and Head of CEEMEA Debt Capital Markets group at J.P. Morgan, commented on the transaction as follows:
“The transaction by Ukreximbank is a true milestone for issuers from Ukraine, providing an important benchmark that can be followed by more issuers from the country and a testament to international investors’ appetite for country’s credit and currency. J.P. Morgan is very pleased to be associated with Ukreximbank and the success of the transaction.”
The transaction has allowed JSC Ukreximbank to raise funds denominated in Hryvnia for a three year period – a term that is practically unavailable for local market borrowings at the moment. The transaction will enable JSC Ukreximbank to proceed with its long-term lending projects, which will contribute towards establishing favorable conditions for the Ukrainian economy’s sustainable development.